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Runner is a service company owned by David Davis that will plant plastic flamingos on a special day in people's yards to help celebrate and
Runner is a service company owned by David Davis that will plant" plastic flamingos on a special day in people's yards to help celebrate and advertise birthdays, births, anniversaries, and other important milestones. The average delivery is priced at $75. The costs of providing 775 deliveries in the past year were: Direct labor Variable overhead Fixed overhead (advertising costs, phone service, insurance) Total cost $ 11,625 8,525 17,000 $ 37,150 At the start of the current year, Davis received a phone call from the local Rotary club. The club would like to contract with Runner to have flamingos delivered to the yards of each of its members in the upcoming year; this contract would provide an additional 136 deliveries for Runner. However, the club wants a special price since it is ordering a large number of deliveries; it has said it would like a price of $60 per delivery. Runner can make up to 1,000 deliveries per year without incurring additional fixed costs. What will be the affect on profit if Davis accepts the special order? (Enter decrease in profit using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) by $ per year. Profit wil v increase decrease
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