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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 11
A company contemplating the acceptance of a special order has the following unit costs based on 10000 units: Direct materials $4 Direct labor 11 Variable overhead 8 Fixed overhead 5 A foreign company wants to purchase 3900 units at a special unit price of $28. 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 $(15500). $15500. $(19500). $19500.
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