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Problem 8.3: Vistas produces vinyl replacement windows. The company has Total capacity of 500,000 windows. Budgeted production is 450,000 windows per year, a quantity that
Problem 8.3: Vistas produces vinyl replacement windows. The company has Total capacity of 500,000 windows. Budgeted production is 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials $ 40 Direct labor 18 Manufacturing overhead 20 Selling and administrative 14 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. Windows sell for $150 each. A 2% distributor's commission is included in the selling and administrative expenses. Required: ScandiHomes, Finland's second largest homebuilder, has approached Vistas about a special order of 75,000 windows. Given the size of the order, ScandiHomes has requested a 40% volume discount on Wilson's normal selling price. Should Wilson grant ScandiHomes' request
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