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Calaulator Special-Order Decision Rianne Company produces a light fixture with the following unit cost: Direct materials Direct labor Variable overhead Fixed overhead $2 $8 The

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Calaulator Special-Order Decision Rianne Company produces a light fixture with the following unit cost: Direct materials Direct labor Variable overhead Fixed overhead $2 $8 The production capacity is 300.000 units per year, Because of a depressed housing market, the company expects to produce only 180,000 fixtures for the coming year. The company also has fixed selling costs totaling $500,000 per yeor and variable selling costs of s1 per unit sold. The fixtures normally sell for $12 each. ) At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 100,000 fixtures for S7 each. The customer also offered to pay all transportation costs. Since there would be no sales commissions involved, this order would not have any variable selling costs, 1. Conceptual Connection: Based on quantitative (numerical) nalysis, should the company accept the order? tha quantitative analyais la in favor of the apecial ordar 2. CONCEPTUAL CONNECTION What qualitative factors might impact the decision? Assume that no othar ordars are axpactad beyond the regular business and the special order Check My Work Previous Next Save and Exit Submit Assignment for Grading R EN Calaulator Special-Order Decision Rianne Company produces a light fixture with the following unit cost: Direct materials Direct labor Variable overhead Fixed overhead $2 $8 The production capacity is 300.000 units per year, Because of a depressed housing market, the company expects to produce only 180,000 fixtures for the coming year. The company also has fixed selling costs totaling $500,000 per yeor and variable selling costs of s1 per unit sold. The fixtures normally sell for $12 each. ) At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 100,000 fixtures for S7 each. The customer also offered to pay all transportation costs. Since there would be no sales commissions involved, this order would not have any variable selling costs, 1. Conceptual Connection: Based on quantitative (numerical) nalysis, should the company accept the order? tha quantitative analyais la in favor of the apecial ordar 2. CONCEPTUAL CONNECTION What qualitative factors might impact the decision? Assume that no othar ordars are axpactad beyond the regular business and the special order Check My Work Previous Next Save and Exit Submit Assignment for Grading R EN

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