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Q4 (20%) Adamyan Co. manufactures and sells medals for winners in athletic and other events. Its manufacturing plant has the capacity to produce 15,000 medals
Q4 (20\%) Adamyan Co. manufactures and sells medals for winners in athletic and other events. Its manufacturing plant has the capacity to produce 15,000 medals each month; current monthly production is 12,750 medals. The company normally charges $ 120 per medal. Cost data for the current level of production are shown below; The company has just received a special one-time order for 1,000 medals at $83 each. For this particular order, no variable selling and administrative costs would be incurred. Instructions: a) Should the company accept this special order? What will be the effect in operating income? Show calculations b) if the special order requires a special feature in the medals that will need a tool that costs $500, Would the company still accept this order
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