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A company is currently operating at capacity and manufacturing and selling 5,000 units of its only product. Another company is interested in purchasing 300
A company is currently operating at capacity and manufacturing and selling 5,000 units of its only product. Another company is interested in purchasing 300 units, but only if they can purchase the product for $350 each. The current information per unit for producing and selling 5,000 units is: Selling price Manufacturing costs: Variable Fixed Selling & Administrative costs: Variable $500 $130 $270 $20 $40 Fixed This special order is a one time order and would reduce the company's regular sales. The financial advantage (disadvantage) for the company to accept the special order for 300 units would be: O $(45,000) $(60,000). $(50,000). $(90,000).
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