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Levine's Furniture receives a special order for 10 tables for a special price of $3,000. The direct materials and direct labor for each table are
Levine's Furniture receives a special order for 10 tables for a special price of $3,000. The direct materials and direct labor for each table are $100. In addition, supervision and other fixed overhead costs average $150 per table. Should Levine accept the special order? Why or why not? Would it make a difference to your answer if Levine is at full capacity and its current line of tables sells for $500 each?
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