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Sound Systems expects sales of 24,600 radios in the current year as follows: Sales 528, 000 Variable manufacturing costs 292. 000 Fixed manufacturing costs 120.

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Sound Systems expects sales of 24,600 radios in the current year as follows: Sales 528, 000 Variable manufacturing costs 292. 000 Fixed manufacturing costs 120. 000 Variable selling costs 52, 300 Fixed administrative costs 35, 200 Sound Systems has also received a special order from a new customer for 5,000 radios at $16 each. Sound Systems estimates approximately 5, 000 additional units could be made with the capacity currently available in the factory. The owner of Sound Systems is in favour of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is against acceptance because his 'full cost' of production is $11 Determine the change in Sound Systems' profit if the special order is accepted. Please round to 2 dec places and incorporate a negative sign if the answer is a reduction in profit. $0

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