Windham Industries has an annual plant capacity of 80,000 units; current production is 65,000 units per year.
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1. How would accepting the special order impact Windham's operating income? Should Windham accept the special order?
2. How would your analysis change if the special order sales price were to be $50.00 per unit and Windham would have to pay an attorney a fee of $35,000 to make sure it is complying with export laws and regulations relating to the special order?
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