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Question 1 : The Book Company produces 4 7 , 5 0 0 books a month, which is 9 5 % of factory capacity. Variable

Question 1: The Book Company produces 47,500 books a month, which is 95% of factory capacity. Variable manufacturing costs are $5 per unit. Books are usually sold for $15 apiece. Fixed manufacturing costs are $80,000 per month.The Book Company has just received a special order from XYZ Inc. to produce an extra 3,000 books for $7.75. In order to make this order, the company will need to incur an addition $1,200 in fixed costs. What advice do you have for the book company in terms of this order?

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