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Winner Inc. manufactures athletic medals. It has capacity to produce 2 , 5 0 0 medals a month, but its current production is 1 ,
Winner Inc. manufactures athletic medals. It has capacity to produce medals a month, but its current
production is medals. It nows has the chance to get full production with an order for medals.
Variable and fixed costs for the current level of of capacity are as follows:
Winner Inc. has just received a special one time order for medals at $ per medal.
For this particular order, no variable marketing costs will be incurred.
However, a special machine will be required for this order, which will cost $
and have no salvage value at the end of the order.
Required If the order is accepted, how much will the income change?
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