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A customer has requested that Leweling Corporation fill a special order for 2.900 units of product S47 for $34 a unit. While the product would
A customer has requested that Leweling Corporation fill a special order for 2.900 units of product S47 for $34 a unit. While the product would be modified slightly for the special order, product 547s normal unit product cost is $24.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 6.50 6.00 3.60 8.50 $ 24.60 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs customer would like modifications made to product S47 that would increase the variable costs by $2.10 per unit and that would require an in of $19,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a res accepting this special order should be: Multiple Choice O ($2,700) ($18,700) . 3 Moyt
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