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managerial accounting question Jackson Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal
managerial accounting question
Jackson Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level per year is: A special order has been received with the following details: \begin{tabular}{|l|r|} \hline Units in special order & 20,000 \\ \hline Selling price to special order customer & $80.00 \\ \hline \end{tabular} Note 1: There will be no commissions incurred for the special order. Management has asked you for your assistance in deciding whether or not the special order should be accepted. Required: Calculate the following: Using your answers to part a and b, calculate the following: c. Total Contribution margin earned from special order (for the entire special order) d. If the company decides to take on the special order, how many units will they NOT be able to sell to their regular customers? e. Opportunity cost (if any) - show as positive number f. Increase (decrease) in operating income B. Should the special order be accepted based on quantitative factors? h. Why or why not? (1 mark) i. Name one qualitative factor that management should consider prior to accepting this special order? This cannot be a generic answer and has to be based specifically on this question data. (1 mark) Step by Step Solution
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