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You sell high-quality fake IDs to college students at a regular price of $95. Your financial results for 20X9 are summarized in the following contribution

You sell high-quality fake IDs to college students at a regular price of $95. Your financial results for 20X9 are summarized in the following contribution margin statement:

20X9
Sales volume (#units) 90
Revenue $8,550
Variable costs $1,800
Contribution margin $6,750
Fixed costs $1,300
Profit $5,450

Special order: You have been approached by a client who wants to buy 40 units at a discounted price of $35 per unit. You have enough spare capacity to fulfill this special order without cutting back on your regular business (90 units at $95). Required: 1. Compute total profit with the special order (total for the regular business plus the special order). To do that, compute total revenue, costs, etc with special order: Total revenue=$ Total VC=$ Total CM=$ Total FC=$ Profit = $ 2. Make a decision based on total profits with and without the special order. Should you take this special order? (enter 1 if yes, 2 if no)

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