Question: Special order decision given revised data (Learning Objective 2) Consider the ACDelco special sales order example on pages 419-421. Suppose ACDelco's variable manufacturing cost is

Special order decision given revised data (Learning Objective 2)

Consider the ACDelco special sales order example on pages 419-421. Suppose ACDelco's variable manufacturing cost is $\$ 1.35$ per oil filter (instead of $\$ 1.20$ ). In addition, ACDelco would have to buy a special stamping machine that costs $\$ 9,000$ to mark the customer's logo on the special-order oil filters. The machine would be scrapped when the special order is complete.

Would you recommend that ACDelco accept the special order under these conditions? Show your analysis.

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