Question
Hyde Farms Per Unit Direct materials $19 Direct labor $11 Variable overhead $6 Fixed overhead $9 Total $45 Hydes Hyde Farms Inc. a US based
Hyde Farms Per Unit Direct materials $19 Direct labor $11 Variable overhead $6 Fixed overhead $9 Total $45 Hydes Hyde Farms Inc. a US based firm located in Topeka, Kansas has a capacity of 95,000 units. The are currently producing and selling 90,000 units at $50 per unit. The cost of a unit at the present production level is provided in the analysis above. An order for 10,000 units has just been received from Von Boom Corp (a domestic business based in Belgium) at a price of $42 per unit. Freight costs of $2 per unit would be required (paid by Hyde) for international shipping. Should Hyde accept the order from Von Boom?
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