Alpha manufactures a product that has a fixed cost of ($400,000) and a variable cost of ($100)

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Alpha manufactures a product that has a fixed cost of \($400,000\) and a variable cost of \($100\) per unit. The company has been making 10,000 units and selling them for \($200\) per unit. There is excess capacity in the plant and a buyer has asked to buy 1,000 units for \($120\) apiece.

What should Alpha do?

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Related Book For  book-img-for-question

Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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