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Should alfred accept the special order

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Question - The Alfred E. Newman Company has capacity to produce 50,000 units of its product, rubber biscuits, each year. They currently produce 33,000 biscuits per year and sell them for $50 each. A customer has placed a special order for 5,000 biscuits and wants to pay $35 per biscuit. The incremental cost of accepting this special order is $110,000. Should Alfred accept the special order?

Reference no: EM133118233

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