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================================ Please answer BOTH (a) & (b) IN DETAILS to get upvote. Thanks. Sales volume in units |80 $5,600 $800 Revenue Variable costs Fixed costs
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Please answer BOTH (a) & (b) IN DETAILS to get upvote.
Thanks.
Sales volume in units |80 $5,600 $800 Revenue Variable costs Fixed costs Profit Special order: A client wants to buy 30 units at a discounted price of $30 per unit. This is a one-time deal (i.e., a short-term Contribution margin $4,800 $1,600 $3,200 decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales a) Use the gross approach to decide whether you should take the special order: status quo (no special total amounts after adding order $5,600 $800 $4,800 $1,600 $3,200 the special order Revenue Variable costs Contribution margin Fixed costs Profit b) Use the incremental approach to decide whether you should take the special order. changes after adding the special order Incremental revenue Incremental variable costs Incremental contribution margin Incremental fixed costs Incremental profitStep by Step Solution
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