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QS 19-21 (Algo) Analyze special order LO P3 LI Company produces a product that sells for $104 per unlt. The product cost per unit using

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image text in transcribed QS 19-21 (Algo) Analyze special order LO P3 LI Company produces a product that sells for $104 per unlt. The product cost per unit using absorption costing Is \$70. A customer contacts LI and offers to purchase 4,000 units of this product for $88 per unlt. Varlable costs of goods sold with this order would be $40 per unlt, and varlable selling and administratlve costs would be $28 per unit. This speclal order would not require any additional fixed costs, and LI has sufficlent capacity to produce this special order without affecting regular sales. (a) Compute contribution margin for this special order. (b) Should LI accept this speclal order? Complete this question by entering your answers in the tabs below. Compute contribution margin for this special order. QS 19-21 (Algo) Analyze special order LO P3 LI Company produces a product that sells for $104 per unit. The product cost per unit using absorption costing is $70. A customer contacts LI and offers to purchase 4,000 units of this product for $88 per unit. Varlable costs of goods sold with this order would be $40 per unlt, and varlable selling and administratlve costs would be $28 per unlt. This speclal order would not require any additional fixed costs, and LI has sufficlent capacity to produce this speclal order without affecting regular sales. (a) Compute contribution margin for this special order. (b) Should LI accept this speclal order? Complete this question by entering your answers in the tabs below. Should Li accept this special order

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