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Motts Juicy Limited manufactures apple juice with the following costs per unit at the expected production of 50,000 units per month: The fixed manufacturing overhead
Motts Juicy Limited manufactures apple juice with the following costs per unit at the expected production of 50,000 units per month: The fixed manufacturing overhead are estimated to be $600,000 and the company has the capacity to produce 60,000 units per month. Each apple juice regularly sells for $50.00 Considering the recent downturn in the economy, business has slowed down for Motts Juicy Limited and amid this, a wholesaler has offered to pay $45.00 each for 10,000 units. Required: Using the total project approach, should Motts Juicy Limited accept the special order? Explain why or not. (15 marks)
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