Question: Fall 2022 Problem 1 ( 25% of the points) Visit Singapore is the logo of a conference to be held in February 2023. The organizing
Fall 2022 Problem 1 ( 25% of the points) Visit Singapore is the logo of a conference to be held in February 2023. The organizing committee approached your company to produce a special order of a t-shirt with their logo, to be delivered to participants to the conference. They offered to buy 1,500t-shirts at a price of $10 each. Your company has the excess capacity necessary to accept the offer. The following information is related to the production of the tshirts: Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Will you accept the special order? 3. Suppose that the special order had been to purchase 1,000 t-shirts for $11.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. 4. Assume that your company is operating at full capacity. Calculate the special-order price per unit at which your company would be indifferent between accepting or rejecting the special order
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