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Graham Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Grahams normal costing process, variable costs of the special
Graham Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Grahams normal costing process, variable costs of the special order would be $18,500 and fixed costs would be $26,420. Of the fixed costs, $4,700 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order. What is the minimum price Graham should quote to Nash?
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