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The management team of Nash Industries was evaluating its performance for the first half of the year. Production and sales of its fans were on
The management team of Nash Industries was evaluating its performance for the first half of the year. Production and sales of its fans were on budget at 3,250 units to date, with the following income statement reflecting its income for the first half of the year. Orders for the second half of the year were coming in slower than what the company had been expecting. When a new customer called and requested a special discount, the sales team listened. Assume instead that the customer requests 95 units in the special order and offers $37 per unit. Nash management still believes there will be enough capacity to take on the special order. This time, however, variable selling costs will be incurred because the customer is working through a sales representative. How much better or worse off will Nash Industries be if it accepts this special order? Nash Industries would be by $ by accepting this order
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