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Special Order Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for 2009 is as follows: TOBITZU TV Budgeted Income

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Special Order 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 (546 per unit 54600.000 Cost of good sold (132 per unit) 3.200,000) Gross pro 1400.000 Selling expenses (55 per unit) 1500.000 Net income 5900,000 Additional Information (1) or the production costs and selling expenses, 5800,000 and $100,000, respectively, are fixed. (2) Tobitzu TV received a special order from a hospital supply company attering 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 hit the order. The company's sales manager argues for rejecting the order because we are not in the business of paying $32 to make a product to sell for 530 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 X Total contribution 50

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