A company has the opportunity to sell 1,000 extra units of product to a new customer outside the US. The price at which this sale can be made is $95 per unit. The normal price is $125. The standard cost is $75 of variable costs plus $25 of fixed costs – a total cost of $100. Should the company accept this sale? Why? How much more (or less) bottom line profit will the firm have if it makes the sale?
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