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Choose from the following A. $15.75 B. $12.25 C. $14.50 D. 8.75 Blanche Corporation currently produces and sells 24,000 soccer balls per month at a
Choose from the following
A. $15.75 B. $12.25 C. $14.50 D. 8.75
Blanche Corporation currently produces and sells 24,000 soccer balls per month at a price of $22. All sales are made in the United States. Its factory is capable of producing 26,000 soccer balls per month. A European retail store has recently contacted Blanche Corporation and offered to buy 1, 500 soccer balls at $12 each. If the offer is accepted, the sale is not expected to have any effect on the current level of sales or the current selling price in the United States. The accounting department has provided the cost data per soccer ball. Blanche Corporation has excess manufacturing capacity to produce the components without incurring additional fixed factory overhead. Since the European retailer has approached Blanche Corporation about the sale, no selling commission will be paid on this sale. What per-unit manufacturing cost should be used in determining whether Coname Corporation should accept the special orderStep by Step Solution
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