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Question 45 (3 points) Arman Company received a special order for 500 units at $19 per unit. Regular selling price is $29 per unit. Following
Question 45 (3 points) Arman Company received a special order for 500 units at $19 per unit. Regular selling price is $29 per unit. Following are the costs per unit for regular customers: Total variable costs $15.00 per unit Total fixed cost $10.00 per unit. Arman Company has 200 units of excess (idle) production capacity If Arman accepted the special order, the variable cost per unit incurred on the special order will be reduced by $2.00. In addition, the company will forgo 300 units of its regular customers. To maximize profit. Arman should: Accept the special order because it will increase its profit by $1,800 Reject the special order because it will decrease its profit by $2,200 Reject the special order because it will decrease its profit by $1,200 Reject the special order because it will decrease its profit by $5,000 profit by $4000
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