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4 Clean, Inc. cleans and waxes floors for commercial customers. The company is presently operating at less than capacity, with equipment and employees idle at
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Clean, Inc. cleans and waxes floors for commercial customers. The company is presently operating at less than capacity, with equipment and employees idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $32,000. The size of the proposed job is 45,000 square feet. The company's normal service costs are as follows: Unit-level materials Unit-level labor Unit-level variable overhead Facility-level overhead $ 0.41 per square foot $0.48 per square foot $0.31 per square foot Allocated at $0.33 per square foot If the company accepts the special offer: Multiple Choice The company will lose $22,000 on the job. The company will earn $13,550 on the job. Multi Sice O The company will lose $22,000 on the job. The company will earn $13,550 on the job. O O The company will lose $36,850 on the job. O O The company will lose $8,050 on the job Step by Step Solution
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