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A new potential customer came to Vaughn Homes, offering to pay $21 per unit for an order of 100 old-fashioned toasters to promote a
A new potential customer came to Vaughn Homes, offering to pay $21 per unit for an order of 100 old-fashioned toasters to promote a nostalgic feeling in its RVs. The customer is not willing to pay full price for the toasters, however, recognizing that it could go elsewhere and find a reasonable substitute product that would provide a similar customer experience. Accounting staff at Vaughn told the sales and operations managers that the special order can't be accepted unless Vaughn can reduce its costs by 25%, even though it has production capacity to take on this special order. Some of Vaughn's old-fashioned toaster unit costs are as follows. DM $11.00 DL 5.00 Variable SG&A 3.00 Fixed SG&A 2.40 (a1) Which costs is the accounting staff referring to when it notes that Vaughn must reduce its costs? In the costs given above, are any costs missing? (Round answers to 2 decimal places, e.g. 15.25.) $ +A $ SA $ cost is missing. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
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