Essay
Jerston Company has an annual plant capacity of 3,000 units. Data concerning this product are given below: The company has received a special order for 500 units at a selling price of $45 each. Regular sales would not be affected, and sales commissions on the 500 units would be reduced by one-third. This special order would have no impact on total fixed costs.
Required:
Determine whether the company should accept the special order. Show all computations.
Correct Answer:

Verified
Correct Answer:
Verified
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