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Exercise: Special Order with Opportunity Costs KonnectCo manufactures flash drives and sells them for $20 . Fixed Costs per Month Variable Costs per Unit Direct
Exercise: Special Order with Opportunity Costs KonnectCo manufactures flash drives and sells them for $20 . Fixed Costs per Month Variable Costs per Unit Direct materials $3 Direct labor 4 Manufacturing overhead 2 Selling and administrative 1 Manufacturing overhead Selling and administrative $20,000 8,000 . What if KonnectCo were operating at capacity, its regular customers pay $20 per flash drive, and the special order customer wants to buy 800 units per month at $16 each Question: Should KonnectCo accept the order? If KonnectCo accepted the order, how much its profit would change? . 19
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