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Jaymes 3000

Price: $1.99


At Jaymes Company, it costs $30 per unit ($20 variable and $10 fi xed) to make
a product at full capacity that normally sells for $45. A foreign wholesaler offers to buy
3,000 units at $25 each. Jaymes will incur special shipping costs of $2 per unit. Assuming
that Jaymes has excess operating capacity.

Indicate the net income (loss) Jaymes would
realize by accepting the special order

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