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Please do in excel!! Kellman Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs:
Please do in excel!!
Kellman Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs: Kellman received a special order for 1,000 units of the product. The company currently has idle capacity and could take the order if desired. The only additional cost to Kellman would be additional direct materials of $1 per unit. The customer has offered to purchase the 1,000 units at a price of $7.00 each. INSTRUCTIONS: What would be the minimum sales price per unit that Kellman would consider for this special order? SHOW YOUR WORK! a. $18.00 b. $11.00 c. $5.40 d. $19.00 How much incremental profit/(loss) will the company earn if they accept the special order at the minimum selling price of $7.00 each? SHOW YOUR WORKStep by Step Solution
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