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please give Answer with an hour OneCo, Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per
please give Answer with an hour
OneCo, Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Direct materials $ 4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission 0.90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: . Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. Zelda Productions, Inc. has offered to produce 1,000 units at a delivered cost to OneCo of $14.50 each. . A. What would be the effect on OneCo's operating income of each of the following actions? 1. Acceptance of the proposal from Gatsby, but rejection of the proposal from Zelda. 2. Acceptance of the proposal from Zelda, but rejection of the proposal from Gatsby. 3. Acceptance of both proposalsStep by Step Solution
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