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Special order The Widget Company produces 25,000 widgets a month, which is 80% of factory...

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Accounting

Special order The Widget Company produces 25,000 widgets a month, which is 80% of factory capacity. Variable manufacturing costs are $3 per unit. Fixed manufacturing costs are $50,000 per month. Widgets are usually sold for $10 apiece. The Widget Company has just received a special order from Mumbai Imports to produce an extra 2,000 widgets for $4.75. Should The Widget Company accept the order?

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