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Exam Cover 12,15 and has a selection from ot. 29 TB MC Qu. 12-81 A customer has requested that Lewelling Corporation... A customer has requested
Exam Cover 12,15 and has a selection from ot. 29 TB MC Qu. 12-81 A customer has requested that Lewelling Corporation... A customer has requested that Lewelling Corporation fil a special order for 2100 units of product 547 for 526 unit while the product would be modified slightly for the special order, product 547s normal unit product costs $19.20 00:56:24 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 5.70 3.00 2.80 7.70 $19.20 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product 547 that would increase the variable costs by $130 per unit and that would require an investment of $11,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage for the company as a result of accepting this special order should be: Multiple Choice
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