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Please explain in detail how to get the answers! Relevant Costs for Decision Making The Mixedup Company makes two products, Carpet Polish and Floor Deodorizer.
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Relevant Costs for Decision Making The Mixedup Company makes two products, Carpet Polish and Floor Deodorizer. Operating information from the previous year is as follows: Fixed costs of $20,000 per year are presently allocated evenly between both products. If the product mix were to change, total fixed costs would remain the same. Assuming everything produced for either product can be sold, how many units of each product should be produced and sold if machine hours are limited to 10,000? Sound Inc. reported the following results from the sale of 24,000 radios: Rhythm Co. has offered to purchase 3,000 radios at $16 each. Sound estimates approximately 5,000 units could be made with the capacity currently available in the factory. The owner of Sound is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because his "full cost" of production is $17. What would the change in profit be if the special order is acceptedStep by Step Solution
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