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Miles Audio produces and sells car audio systems. They specialize in receivers and currently offer two models. The Growier is a high quality but affordable unit that the company produces for sale in auto parts and electronics stores. The Maniac is sold almost solely to individuals and high-end cacstereo installers. The Maniac is only produced to order. In other words, the Maniac is not kept in inventory and is only produced when a customer orders one. Based on estimates of next quarter's business, the financtal staff at Miles has produces the following forecasted income statement. Firm orders have already been placed with Miles for the 450 Maniac systems reflected in the forecasted quarterly income statement. Materials inspection varies with moterial cost. The labor wage rate at Miles (excluding variable overhead) is $46 per hour. The factory lease, utilities, and miscellaneous factory costs are allocated to the product lines based on the amount of floor space occupied. Sales and administration costs are not allocated to the two product lines. Lnnoo Custom Systems, a custom car audio shop, has called Miles and asked about placing an order for the upcoming quarter for 100 units of the Manloc. Milos Audio is already scheduled to work at capacity in the next quarter and would have to give up some other business to fuifil this ordec. Miles is committed to the orders for the Maniac it already has accepted but can reduce the number of Geowler systems produced in the next quarter to 1,900 . Mites would not be able to make up the losses from the reduced Growlor sales as the maket is quite competitive and customers for this relatively standard system will buy another product. Miles also is expecting to be operating at close to full capacity for the foreseeable future, which is another reason the lost Growler systems could not be replaced later. The customer is wiling to pay a premium price of $1,220 for the special order. The factory lease, utilities, miscellaneous factory costs, and sales and administration would not be affected by the special order. Calculate the differential operating profit (loss). (Select option "increase" or "decrease", keeping Without special orde base. Select "none" if there is no effect.) Complete this question by entering your answers in the tabs below. What is the minimum price Miles Audio should accept to take the special order from Lanoo Custom Systems

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