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Please help with the question Question 6 Bradman's Pty Ltd manufactures some product for the domestic Australian market and sells each at a price of
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Question 6 Bradman's Pty Ltd manufactures some product for the domestic Australian market and sells each at a price of $50. The following typical monthly operating results were reported while operating at 90% of fa The fixed costs components for the typical month were: for Cost of Sales, $900,000 and for Selling and administrative expenses, $180,000., Bradmans receives a special export order for 10,000 units at $34 each. Acceptance of the order would increase variable selling and administrative expenses by $0.35 per unit because of shipping costs but would not increase fixed costs and expenses. Required: a. Does Bradman's have the capacity to serve the export order? Justify your answer. b. Provide calculations to justify whether Bradman should accept or reject the special order. c. What is the minimum selling price on the special order to produce an incremental profit equivalent to 15% of variable costs per unit? d. What non-financial factors should management consider in making its decision Step by Step Solution
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