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Clean, Incorporated cleans and waxes floors for commercial customers. The company is presently operating at less than capacity, with equipment and employees idle at times.

Clean, Incorporated cleans and waxes floors for commercial customers. The company is presently
operating at less than capacity, with equipment and employees idle at times. The company recently
received an order from a potential customer outside the company's normal geographic service
region for a price of $30,000. The size of the proposed job is 43,000 square feet. The company's
normal service costs are as follows:
Unit-level materials
Unit-level labor
Unit-level variable
overhead
Facility-level
overhead
$0.39 per square foot
$0.46 per square foot
$0.29 per square foot
Allocated at $0.31 per square foot
If the company accepts the special offer:
Multiple Choice
the company will earn $13,230 on the job.
the company will lose $19,020 on the job.
the company will lose $6,550 on the job.
the company will lose $32,350 on the job.
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