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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 29,000

Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton has the capacity to produce 29,000 units a year but is currently producing and selling only 13,000 units a year. The computers normal selling price is $1,640 per unit with no volume discounts. The unit-level costs of the computers production are $520 for direct materials, $130 for direct labor, and $170 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Thornton during the year are expected to be $2,280,000 and $815,000, respectively. Assume that Thornton receives a special order to produce and sell 3,150 computers at $1,210 each. Required Calculate the contribution to profit from the special order. Should Thornton accept or reject the special order?

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