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Include the steps, please ? Major 2 () cost 22/11/2018 03. Majestic Company manufactures a product that has the following unit costs: direct materials, 85,
Include the steps, please
? Major 2 () cost 22/11/2018 03. Majestic Company manufactures a product that has the following unit costs: direct materials, 85, direct labor, 57: variable overhead, 53, and fixed overhead, S5. Fixed selling costs are $200,000 per year. Variable selling costs of Si per unit cover the transportation cost. Although production capacity is 80,000 units per year, the company expects to produce only 65,000 units next year. The product normally sells for $30 each. A customer has offered to buy 10,000 units for $18 each. (The customer will pay the transportation charge on the units purchased. What is the effect on Majestic's income if the special order is accepted? Use Incremental method ONLY. 0 Do not accept soon As IncrementalStep by Step Solution
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