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5. ABC Company normally sells its product to customers for $25/unit. A customer has come to ABC and wants to order 1,000 units of product
5. ABC Company normally sells its product to customers for $25/unit. A customer has come to ABC and wants to order 1,000 units of product for $20/unit. Given this reduction in price and the following facts should ABC agree to sell its product to its customer at the discounted price? Direct material cost to produce the product $7 Direct labor cost to produce the product $6 Variable overhead cost to produce the product $5 Fixed overhead cost to produce the product $8
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