ecture 13 homework Thornton Company manufactures a personal computer designed for use in schools and...
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ecture 13 homework Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label Thornton has the capacity to produce 28,000 units a year but is currently producing and selling only 16.000 units a year. The computer's normal selling price is $1680 per unit with no volume discount The unit-level costs of the computer's production are $520 for direct materials. $140 for director and $110 for indirect unit-level manufacturing costs. The total product and facility-level costs incurred by Thornton during the year are expected to be $2100.000 and $802.000, respectively. Assume that Thornton receives a special order to produce and sell 3,130 computers at $1,240 each Required Calculate the contribution to profit from the special order. Should Thornton accept or reject the special order? low Contribution to profit Should Thomson accept or reject the special order?
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