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40 Point) Exerci 7 FA YouTube Videos Help Save & Exit The Melville Corporation produces a single product called a Pong. Melville has the produces

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40 Point) Exerci 7 FA YouTube Videos Help Save & Exit The Melville Corporation produces a single product called a Pong. Melville has the produces at capacity, the per unit costs to produce and sell one Pong are as follows: e capacity to produce 60,000 Pongs each year IfI Mehvile Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense $15 $12 s 8 s 9 s 3 The regular selling price for one Pong is $80. A special order has been received by Melville from Mowen Corporation to purchase 6,000 Pongs next year. If this special order is accepted, the variable selling expense will be reduced by 75% However, Melville will have to purchase a speclalized machine to engrave the Mowen name on each Pong in the special order. This machine will cost have no use after the special order is filed. The total fixed manufacturing overhead and selling expenses would be unaffected by this special order. Assume that direct labor is a variable cost Assume Melville can sell 58,000 units of Pong to regular customers next year f Mowen Corporation offers to units at $65 per unit, the annual financial advantage (disadvantage) for Melville as a result of accepting this special order should be K Prev 7 of 15 Next :> 12

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