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Assume that Polaris has proceeded with the anticipated changes, and is exploring new markets as a result of the engineering changes referred to above aswell as the increase in capacity, and has accepted a proposal to make 20,000 units of a modified version of the meter which will generate $10 of contribution margin per unit.
Required:
Problem 1: Should Polaris go ahead with this new job? Explain with proof.
Problem 2: What other nonfinancial and qualitative factors should be considered in making this decision?
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