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Should adams accept the special order

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Adams Furniture receives a special order for 10 sofas for a special price of $3,000. The direct materials and direct labor for each sofa are $100. In addition, supervision and other fixed overhead costs average $150 per sofa. Should Adams accept the special order? Why or why not? Would it make a difference to your answer if Adams is at full capacity and its current line of sofas sells for $500 each?

Reference no: EM132438278

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