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A company contemplating the acceptance of a special order has the following unit costs based on 10000 units: Direct materials $4 Direct labor 10
A company contemplating the acceptance of a special order has the following unit costs based on 10000 units: Direct materials $4 Direct labor 10 Variable overhead 8 Fixed overhead 6 A foreign company wants to purchase 2000 units at a special unit price of $25. The normal selling price per unit is $40. In addition, a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is $6000. $(2000). $(6000). $2000.
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