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Company A can make 1,000 towels per month. They sell 850 towels per month to department stores at $8 per towel. The company's cost per
Company A can make 1,000 towels per month. They sell 850 towels per month to department stores at $8 per towel. The company's cost per towel based on making 1,000 towels is:
Prime costs $4
Overhead costs (75% fixed at a volume of 1,000 towels) $2
W Inc. offers to buy 150 towels with special lettering for $5 per towel. The special lettering will cost Company A $25 in total.
Determine Company As incremental profit or loss if the W offer is accepted:
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