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QS 1 9 - 2 1 ( Static ) Analyze special order LO P 3 Li Company produces a product that sells for $ 8
QS Static Analyze special order LO P
Li Company produces a product that sells for $ per unit. The product cost per unit using absorption costing is $ A customer contacts Li and offers to purchase units of this product for $ per unit. Variable costs of goods sold with this order would be $ per unit, and variable selling and administrative costs would be $ per unit. This special order would not require any additional fixed costs, and Li has sufficient capacity to produce this special order without affecting regular sales.
a Compute contribution margin for this special order.
b Should Li accept this special order?
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