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Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton has the capacity to produce 3

Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton has the capacity to produce 30,000 units a year but is currently producing and selling only 17,000 units a year. The computer's normal selling price is $1,650 per unit with no volume discounts. The unit-level costs of the computer's production are $550 for direct materials, $240 for direct labor, and $130 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Thornton during the year are expected to be $2,240,000 and $816,000, respectively. Assume that Thornton receives a special order to produce and sell 3,040 computers at $1,230 each.
Required
Calculate the contribution to profit from the special order. Should Thornton accept or reject the special order?
\table[[Contribution to profit],[Should Thornton accept or reject the special order?]]
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