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Company is currently operating at full capacity manufacturing a product that normally sells for $50 each with per unit costs of: direct materials = $5.50;
Company is currently operating at full capacity manufacturing a product that normally sells for $50 each with per unit costs of: direct materials = $5.50; direct labour = $7.00; variable manufacturing overhead = $10.00; fixed manufacturing overhead = $12.00 and variable selling = $3.00. Forge has received a special order for 1,000 units, each of which require a special label at a cost of $0.75 per unit. Capacity cannot be increased in time meet the special order. If Company accepts the special order what is the minimum price they should accept? Select answer from the options below $25.25 $23.75 $38.25 $37.25
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