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XYZ Corporation manufactures electronic devices. The company has received a special order for 2,000 units of a customized device. The special order requires additional setup
XYZ Corporation manufactures electronic devices. The company has received a special order for 2,000 units of a customized device. The special order requires additional setup costs of $10,000 and direct materials costs of $20 per unit. The company's normal selling price for similar devices is $150 per unit, with variable costs of $50 per unit and fixed costs of $100,000. Determine whether XYZ Corporation should accept the special order based on incremental analysis.
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