Gleam Clean cleans and waxes floors for commercial customers. The company is presently operating at less than capacity with equipment and employees at times idle. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $9,000. The size of the proposed job is 22,000 square feet. The company's normal service costs are as follows: Unit-level materials $0.18 per square foot Unit-level labor $0.25 per square foot Unut-level variable overhead $0.08 per square foot Facility-level overhead Allocated at $0.10 per square foot If the company accepts the special offer: The company will lose $4,420 on the job. The company will lose $2,220 on the job. The company will earn $5,040 on the job. The company will lose $460 on the job Question 3 0.5 pts Colson Howard Company operates a store in downtown Savannah that has five departments including a sporting goods department. If the sporting goods department is closed, the store manager's position will not be affected, but if the entire store is closed, the manager will be terminated. Which of the following lessons should be learned from this example? Information does not have to be precisely accurate in order to be relevant. Relevance of costs is context sensitive. O Sunk costs cannot be avoided. Opportunity costs are always present. Question 4 0.5 pts Select the correct statement regarding relevant costs and revenues. Sunk costs are relevant for decision-making purposes. Avoidable costs are also known as sunk costs. Differential revenues are expected future revenues that do not vary between the alternatives under consideration. To be relevant, a cost or revenue must be future-oriented and must differ between the alternatives. Question 5 0.5 pts Select the incorrect statement regarding sunk costs. Sunk costs cannot be avoided. Sunk costs include historical costs such as equipment acquisition costs. Sunk costs are costs that have been incurred in past transactions. O Sunk costs are relevant if they differ between the alternatives