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Proxy has received a special order for 810 units of its product at a special price of $249. The product currently sells 18,600 units for
Proxy has received a special order for 810 units of its product at a special price of $249. The product currently sells 18,600 units for $309 and has the following manufacturing costs: |
Per unit | |||
Direct materials | $ | 85 | |
Direct labor | 62 | ||
Variable manufacturing overhead | 75 | ||
Fixed manufacturing overhead | 41 | ||
Unit cost | 263 | ||
Assume that Proxy has sufficient capacity to fill the order without harming normal production and sales. |
a. | If Proxy accepts the order, what effect will the order have on the company |
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