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Need help with part C)? Assume the customer requests 195 units in the special order and offers $53 per unit. Since the customer came directly
Need help with part C)?
Assume the customer requests 195 units in the special order and offers $53 per unit. Since the customer came directly to the company, no variable selling cost will be incurred. How much better or worse off will Novak Industries be if it accepts this special order, assuming it has enough idle capacity for the order? Novak Industries would be by $ by accepting this order. Assume instead the customer requests 160 units and both a discounted price of $42 per unit and a customized version of the fan. In order to make the customized version, Novak will need to purchase a special piece of equipment for $2,740, but it will not incur any variable selling costs for this order. How much better or worse off will the company be if it uses its available capacity and accepts this special order? Novak Industries would be by $ by accepting this order. Assume instead that the customer requests 95 units in the special order and offers $38 per unit. Novak management still believes there will be enough capacity to take on the special order. This time, however, variable selling costs will be incurred because the customer is working through a sales representative. How much better or worse off will Novak Industries be if it accepts this special order? Novak Industries would be by $ by accepting this orderStep by Step Solution
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