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Question Answer saved Special Order Marked out of 4.00 Haz question Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income
Question Answer saved Special Order Marked out of 4.00 Haz question Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for 2009 is as follows: TOBITZU TV Budgeted Income Statement For the Year 2009 Sales ($46 per un $4,500,000 Cost of good sold ($32 per unit 13,200,000) Grass profit Selling expenses ($5 per unit! Net income 1,400,000 (500,000) $900,000 eBook Pr Additional Information (1) of the production costs and selling expenses, $800,000 and $100,000, respectively, are fixed. (2) Tobitzu TV received a special order from a hospital supply company offering to buy 14,000 wall mounts for $30. If it accepts the order, there will be no additional fixed selling expenses, and there is currently sufficient excess capacity to fill the order. The company's sales manager argues for rejecting the arder because "we are not in the business of paying $32 to make a product to sell for $30." Do you think the company should accept the special order? Compute the contribution per unit and total contribution for the special order. Contribution per unit. Note: Round answer to two decimal places. $0 Total contribution $ 0 Save Answers Next
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