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Assume a company manufactures many products, one of which normaly sells for Sta per unit. The company's accounting system reports e tokowing it outcome to

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Assume a company manufactures many products, one of which normaly sells for Sta per unit. The company's accounting system reports e tokowing it outcome to the product Direct materials Direct labor Manufacturing overhead Total cost Per tnit $18 12 10 $ 40 The company estimates that $3 of its manufacturing overhoed varies with respect to the number of units produced. The remainder of its overhead is fixed and unaltected by the volume of units produced within the relevant range. A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above for $39. The company can order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would incur additional direct materials cost per unit of $3. It would also have to buy a special tool for $590 that has no other use or resale value after the special order is completed. Assuming that accepting this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order? Multiple Choice $3001 $900 customers, what is the financial advantage disadvantage of accepting the special order? ting the order winove any effect ones to Multiple Choice $(300) O $900 0 $310 $1,790 Jamnapea Assume a company is considering adding a new product. The expected cost and revenue data for products as follows 5,000 unita 4.60 Annual sales Unit welling price Unit variable costs Production Selling Incremental fixed costa per year Production Selling $33 S6 $ 34,500 $ 45,000 If the company adds the new product, it expects the contribution margin of other product lines to drop by $15,300 per year. What is the financial advantage disadvantage of coding the new product? Multiple Choice $40.800 $25.500 the new product? Multiple Choice $40,000 $25.500 $10.200 $89,700 MC >

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