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please help me find the contribution margin for the special order Franco, Inc., produces dental office examination chairs. Franco has the capacity to produce 10,000
please help me find the contribution margin for the special order
Franco, Inc., produces dental office examination chairs. Franco has the capacity to produce 10,000 chairs per year and currently is producing 5,000. Each chair retails for $15,000, and the costs to produce a single chair consist of direct materials of $3,000, direct labor of $3,000, and variable overhead of $3,000. Fixed overhead costs of $1,100,000 are met by selling the first 3,000 chairs. Franco has received a special order from Ghanem, Inc., to buy 600. Each chair is sold for $10,000 (selling price of one chair). There are no additional costs needed for this special order. What is the contribution margin for the special order Step by Step Solution
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