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Indigo Co. sells product P14 at a price of $49 a unit. The per-unit cost data are direct materials $16, direct labour $11, and overhead
Indigo Co. sells product P14 at a price of $49 a unit. The per-unit cost data are direct materials $16, direct labour $11, and overhead $16(75% variable). Indigo Co. has sufficient capacity to accept a special order for 38,200 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Determine whether Indigo Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g. 15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Indigo Co. the special order
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