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Direct materials Direct labor Overhead (50% variable) Cost to manufacture Desired markup (50%) 16 Target selling price 8 $24 The above cost information is
Direct materials Direct labor Overhead (50% variable) Cost to manufacture Desired markup (50%) 16 Target selling price 8 $24 The above cost information is based on 5,400 units. A foreign distributor has offered to buy 2,400 units at a price of $20 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by: Multiple Choice $7,200. $6,000 $9,600 512335 < Prev 6 of 25 Next >
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