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Help with this question please! Differential Analysis - Special Order The company was approached by a buyer who wishes to purchase 16,000 units ofProduct Z
Help with this question please!
Differential Analysis - Special Order The company was approached by a buyer who wishes to purchase 16,000 units ofProduct Z as a one-time special order. The buyer is willing to pay SIS.OO each, which is considerably less than our normal selling price of S30.OO each. The buyer will market the products in a foreign country under her own brand name, so it will not compete with the company's existing customers. The additional business is not expected to affect the domestic selling price or quantity of sales. The company has excess capacity in which to produce the special order. Product Z Information Normal Selling Price Variable Cost Per Unit Fixed Cost Per Unit Special Order Selling Price Special Order Quantity S17.oo sn.oo S15.oo 16,000 How much additional Sales dollars will the company have if they ACCEPT the special order? How much additional Net Profit or Loss will the company have if they ACCEPT the special order? (gfXet Lo::, enter amount with a minus sign) Only considering your financial calculations above, should the company ACCEPT the special order? What is the lowest per unit price that the company could accept for the special order without incurring a Net Loss on the special order? (show number to the nearest penny) Given the situation above, the Fixed Costs were:
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