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Part 2 Handy Bag also produces 1,000 bags for export per month for a fixed...

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Accounting

Part 2

Handy Bag also produces 1,000 bags for export per month for a fixed cost of $300,000 and variable cost of $500 per unit. Its current demand is 600 units which it sells at $1,000 per unit. It is approached by Man Purse Limited for an order of 200 units at $700 per unit.

Should Handy Bag accept the order and why?

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