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. :-.O-B.LNormal 11NoSpac Heading 1 Heading 2 Title Subti Paragraph Styles red on your computer. Save Problem 5 (6 points) Hawkins Company produces a single

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. :-.O-B.LNormal 11NoSpac Heading 1 Heading 2 Title Subti Paragraph Styles red on your computer. Save Problem 5 (6 points) Hawkins Company produces a single product. The cost of producing and selling a single unit of this product at the company's current activity level of 80,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses S22.50 7.50 1.70 19.00 2.70 8.60 The normal selling price is $67.80 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.90 less per unit of this special order than on normal sales. 1. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $60.60 per unit. What would be the monthly financial advantage or disadvantage for the company as a result of accepting this special order? 2. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1,600 units for regular customers. What would be the minimum acceptable selling price per unit for the special order

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