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Visit Singapore is the logo of a conference to be held in February 2023. The organizing committee approached your company to produce a special order
Visit Singapore is the logo of a conference to be held in February 2023. The organizing committee approached your company to produce a special order of a t-shirt with their logo, to be delivered to participants to the conference. They offered to buy 1,500t-shirts at a price of $10 each. Your company has the excess capacity necessary to accept the offer. The following information is related to the production of the t-shirts: Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Will you accept the special order? 3. Suppose that the special order had been to purchase 1,000 umbrellas for $11.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. 4. Assume that your company is operating at full capacity. Calculate the special-order price per unit at which your company would be indifferent between accepting or rejecting the special order
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