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Mohammad Inc. makes product A and sells at selling price of SAR 45 per unit. Omar Inc. wants to buy 5,000 units at SAR 27

Mohammad Inc. makes product A and sells at selling price of SAR 45 per unit. Omar Inc. wants to buy 5,000 units at SAR 27 per unit. Mohammad Inc. has a normal capacity of 101,000

units and projected sales to regular customers this year is 92,000 units. Per unit costs traceable to the product (based on normal capacity of 92,000 units) are listed below? Direct Materials 8.1 Direct Labour` 6.0 Variable Mfg. Overhead 6.2 Fixed mfg. overhead 4.8 Fixed administrative costs 0.8 Fixed Selling Costs 0.4 Does the quantitative analysis suggest that the company should accept the special order?

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