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1) A company is currently operating at 70% capacity producing 8,000 units. Cost information relating to this current production is shown in the following table:
1) A company is currently operating at 70% capacity producing 8,000 units. Cost information relating to this current production is shown in the following table: Sales price Direct material Direct labor Variable overhead Fixed overhead Per Unit $15.00 $3.20 $7.10 $0.05 $0.60 The company has been approached by a customer with a request for a special order for 1,500 units. The sales price per unit for this special order is $10. Should the company accept the special order? Show reasons for your
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