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*Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch

*Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has enough excess capacity to fill the order without affect other sales. The following per unit data apply for sales to regular customers:

Variable costs per unit

Direct materials

40

Direct labor

19

Manufacturing Overhead

39

Packaging costs

13

Fixed costs allocated per unit

Manufacturing Overhead

45

Packaging costs

15

The normal selling price is 255 per unit,howwill profit changeif they take an order for 5000 units at a price of $175 per unit?

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