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SPKY Corporation received a special-order request for 50,000 new speakers at a sales price of $20 each. This is a $20 reduction in the normal
SPKY Corporation received a special-order request for 50,000 new speakers at a sales price of $20 each. This is a $20 reduction in the normal sales price. The variable costs per speaker are $19. The total fixed costs of $100,000 will not change. Which of the following is TRUE? Management should accept the order the variable costs per unit and fixed costs in total will not change with the order. Management should accept the order if they have no excess capacity. Management should accept the order if the customers will expect the price decrease as the standard price in the future. Management should reject the special order because the contribution margin per unit is small
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