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The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Dubs is currently

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The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Dubs is currently operating at its capacity of 2,500 units and expects to produce and sell 1,500 units of p1 and 1,000 units of P2. As part of the manufacture of wheels Dubs also manufactures a set of wheel (lug) nuts for each wheel. A supplier has offered to sell Dubs sets of wheel nuts for $37 per set. The accounting records for Dubs assigns the following costs to the manufacture of one wheel nut set: Direct Materials $12.00; Direct Labor $6.00; and Variable Mfg. OH $9.00. All fixed costs are common to the two products and are allocated by management. The contribution margins per unit of pi and P2 are $140 and $120 respectively, excluding the cost of the wheel nut set. Dub's believes that if it purchases the wheel nuts from a supplier it would be able to increase capacity so that it could increase sales of P2 by 510 units (wheel nut sets would have to be purchased for these units as well. What is the total increase in profits Dubs would earn by accepting the supplier's offer? Round your solution to the nearest $1.00. It it would result in a loss to buy from the supplier express your answer as a negative number such as - 2000

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