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Lizzie Loves Cleaning, Inc. cleans and waxes floors for commercial customers. The company is presently operating at less than capacity, with equipment and employees idle

Lizzie Loves Cleaning, Inc. cleans and waxes floors for commercial customers. The company is presently operating at less than capacity, with equipment and employees idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $19,000. The size of the proposed job is 32,000 square feet. The company's normal service costs are as follows:
\table[[,],[direct materials,$0.28 per square foot],[direct labor,$0.35 per square foot],[variable overhead,$0.18 per square foot.],[Facility-level fixed overhead,Allocated at $0.20 per square foot]]
If the company accepts the special offer:
Multiple Choice
The company will lose $13,320 on the job.
The company will earn $10,040 on the job.
The company will lose $1,160 on the job.
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