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Honey Hollow Hills Inc. had the following results of operations for the past year: Sales (50,000 units at $21.50) Materials and direct labor Overhead
Honey Hollow Hills Inc. had the following results of operations for the past year: Sales (50,000 units at $21.50) Materials and direct labor Overhead (20% variable) $1,075,000 (645,000) (85,000) Selling and administrative expenses (all fixed) Operating income (103,450) $ 241.550 A foreign company (whose sales will not affect Honey Hollow Hill's regular sales) offers to buy 3,100 units at $15.50 per unit. In addition to variable manufacturing costs, there would be transportation costs of $700 in total on these units. Prepare an analysis of this additional business to show whether Honey Hollow should take this order.
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