Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000...
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Accounting
Martin Company incurred the following costs for 70,000 units:
Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000 units at $8.4 per unit. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping.
Required:
- Should Martin Company accept this special order? Show your analysis (5 points)
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