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Gundy Company a following costs per unit at the expected production of manufactures product with the 30,000 units: Direct materials $4 Direct labor $12 Variable
Gundy Company a following costs per unit at the expected production of manufactures product with the 30,000 units: Direct materials $4 Direct labor $12 Variable overhead(manufacturing) $6 Fixed overhead $8 The company has the capacity to produce 35,000 units The product regularly sells for $40. A wholesaler has offered to pay $32 per unit for 8,000 units. If the firm chooses to accept the special order and therefore reject some regular sales (because they have limited capacity) Should the manager of Gundy Company accept the offer? How much would operating income increase or decrease
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