Question
Unmeaningful Solutions sells solution generator units for $50 each. It costs the company $30 to produce each generator unit. The company produces and sells 40,000
Unmeaningful Solutions sells solution generator units for $50 each. It costs the company $30 to produce each generator unit. The company produces and sells 40,000 generators per year. A customer wants to place a special order for 8,000 additional units. However, the customer will pay no more than $35 per unit. If the order is accepted, fixed costs will increase by $50,000 for the duration of the order. a. The order will result in an total incremental contribution margin of $ for the order b. The order will result in total incremental fixed costs of $ from the order c. Should Unmeaningful Solutions accept this order? (yes or no)
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