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10. Jerry, the controller of J Company, is evaluating a special order because the company is currently operating well under capacity. Using the companys normal
10. Jerry, the controller of J Company, is evaluating a special order because the company is currently operating well under capacity. Using the companys normal costing process, variable costs of the special order would be $120,000 and fixed costs would be $50,000. Of the fixed costs, $10,000 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order.
Required: What is the minimum price Jerry should accept for the special order?
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