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Special Order, Traditional Analysis Additional processing costs beyond the split - off point are $ 2 . 4 0 per gallon for Refined Oil and
Special Order, Traditional Analysis Additional processing costs beyond the splitoff point are $ per gallon for Refined Oil and $ per gallon for Top Quality Oil. Refined Oil sells for $ per gallon, while Top Quality Oil sells for $ per gallon.
MangiareBuono, a supermarket chain, has asked Fiorello to supply it vith gallons of Top Quality Oil at a price of $ per gallon. MangiareBuono plans to have the oil bottled in ounce bottles vith its ovm MangiareBuono label. that no significant nonunitlevel activity costs are incurred.
Required:
What is the profit normally earned on one production run of Refined Oil and Top Quality Oil?
$
Should Fiorello accept the special order?
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