Pharoah, Inc. budgeted 9,000 widgets for production during 2022. Pharoah has capacity to produce 11,000 units. Fixed factory overhead is allocated to production. The following estimated costs were provided: Direct material ($8/unit) $72,000 Direct labor ($16/hr. x 2 hrs./unit) 288,000 Variable manufacturing overhead ($5/unit) 45,000 Fixed factory overhead costs ($6/unit) 54,000 Total $459,000 Cost per unit = $51 Pharoah received an order for 900 units from a new customer in a country in which Pharoah has never done business. This customer has offered $48 per widget. Should Pharoah accept the order? Yes eTextbook and Media Pharoah received an offer from another company to manufacture the same quality widgets for $44. Should Pharoah outsources the manufacture of all 9,000 widgets and focus only on distribution? eTextbook and Media Attempts: 0 of 1 used Submit Answer Save for Later