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A machine shop in a factory is working to its full capacity and earning a contribution of RO 50 per hour. The management receives a
A machine shop in a factory is working to its full capacity and earning a contribution of RO 50 per hour. The management receives a high priority order which it wants to execute immediately. Material will be supplied by the customer and the order will take a minimum of 10 hours. Wages payable will be RO15 per hour and variable overheads will be 150% of labour cost. If the customer is prepared to pay RO 800 for the order, should the order be accepted.
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