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COB Corporation manufactures thermostats for office buildings. The following is the cost of each unit: u n aterials Labor Variable overhead Fixed overhead (S1,800,000 per

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COB Corporation manufactures thermostats for office buildings. The following is the cost of each unit: u n aterials Labor Variable overhead Fixed overhead (S1,800,000 per year, . S36.00 14.00 4.00 100,000 units per year) 18.00 $72.00 Total Golden Rams Company has approached COB with an offer to buy 7,500 thermostats at a price of $60 each. The regular selling price is $100. COB has the capacity to produce the 7,500 additional units without affecting the current production of 100,000 units. Golden Rams requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Golden Rams order will also require a one-time rental of packaging equipment for $20,000. Prepare a schedule to show the impact of filing the Golden Rams on COB Corporation's profits for the year. 1. 2. Would you recommend that COB Corporation accept the order

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