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Please explain the answer ChapterS.doc [Compatibility Model- Word PAGE LAYOUT REFERENCES MAILINGS REVIEW VIEW ADD-INS 1 Normal 1 No Spac. 4) Each month Fig Company
Please explain the answer ChapterS.doc [Compatibility Model- Word PAGE LAYOUT REFERENCES MAILINGS REVIEW VIEW ADD-INS 1 Normal 1 No Spac. 4) Each month Fig Company produces 11,000 units of a product that sells for $18 per unit, and has variable costs of $12 per unit. Total fixed costs for the month are $77,000. A special order is received for 5,000 units at a price of $14 per unit. Fig Company has adequate capacity for the special order. If Fig Company accepts the special order, what is the profit to Fig Company? A) There is no profit; it is loss. B) $10,000 C) $22,000 D) $99,000 Diff: 2 Page Ref: 184 LO: 5-4 AACSB: Analytic Skills a nroduct that has variable costs of $70 per
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