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Question 6 (6 points) A company has the following data relating to the product they manufacture: Per Unit: Selling price $85 Direct materials 36 Direct

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Question 6 (6 points) A company has the following data relating to the product they manufacture: Per Unit: Selling price $85 Direct materials 36 Direct labour 15 Variable manufacturing overhead 8 Fixed manufacturing overhead 10 They have an opportunity to fill an order of 500 customized units for a new customer at a price of $65 per unit. In addition to their normal expenses, the company would also need to pay $2,500 to a designer to customize the product in order to fill this order. The company currently produces 20,000 units per year and has capacity to produce 22,000 units. Required: Should this order be accepted? By how much will total profit increase or decrease if this order is filled? (6 marks)

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