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5 Sweet Dairy Air, Inc., has received a special order from a customer to buy 100 pounds of premium ice cream for $10 per pound.
5 Sweet Dairy Air, Inc., has received a special order from a customer to buy 100 pounds of premium ice cream for $10 per pound. Sweet Dairy Air has enough idle capacity to accept the order without incurring any additional fixed costs. Identify each of the items as relevant or irrelevant for this special order decision. Production wages of $2 per pound A. Irrelevant The $10 selling price for the special order B. Relevant v Ingredient costs of $4 per pound Allocated overhead cost of $1 per pound The normal selling price of $14
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