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1.Award: 0 out of 0.30 points The following are the Jensen Corporation's unit costs of making and selling an item at a volume of 1,000
1.Award: 0 out of 0.30 points The following are the Jensen Corporation's unit costs of making and selling an item at a volume of 1,000 units per month (which represents the company's capacity) Manufacturing $1.00 Direct materials $2.00 Direct labor Variable overhead $0.50 $0.40 Fixed averheed Selling and Administrative $2.00 arlable Fxed $0.80 Assume the company has 50 unts left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale of these defective units will have no effect on the company's other sales. Which of the following costs is relevant in this decision? O $6.70 full cost S3.50 variable manufacturing cost O $3.90 unit procuct cost O $2.00 variable selling and acministrative cost
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