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I would like step and step on how to complete the question 4. Justco manufactures and sells wooden porch swings. Their facility has capacity to
I would like step and step on how to complete the question
4. Justco manufactures and sells wooden porch swings. Their facility has capacity to produce 100,000 swings per year, but is only operating at 60% of capacity. Each swing is sold for $750 each. Manufacturing cost information related to sales volume of 60,000 swings is as follows: Direct material 16,000,000 Direct labor 9,600,000 Variable manufacturing overhead 2,400,000 Fixed manufacturing overhead 5,000,000 Variable marketing 3,000,000 Fixed selling, general, and administrative 5,300.000 Total costs 41,300,000 Justco received a one-time order from former customer. The order is for 15,000 swings and a sales price of $500 per swing. Fulfilling the order should not affect the company's regular business or its fixed costs. 1. Which of the costs are relevant? 2. Should Justco accept the one-time order? Why? Show your calculation. 3. What qualitative factors should Justco consider in making this decision
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