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Mac Furniture Company received a special order for 10 sofas for a special price of $5,200. The direct materials and direct labor cost for each
Mac Furniture Company received a special order for 10 sofas for a special price of $5,200. The direct materials and direct labor cost for each sofa are $200. In addition, supervision and other fixed overhead costs average $240 per sofa. The regular selling price per sofa is $950. Compute the opportunity cost per unit for lost sales to regular customers if the special order is accepted and the company is operating at full capacity.
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