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Question 2 Part A Sample question with answer Bo Digital company has the capacity of producing 50,000 units annually. Budgeted operating results for 2020 are
Question 2 Part A Sample question with answer Bo Digital company has the capacity of producing 50,000 units annually. Budgeted operating results for 2020 are given below on the table Sales [40,000 @ $28 Variable costs: Manufacturing (40,000 at $4.601 Selling (40,000 at $0.95) Admin (40,000 at $1.20) Fixed Cost Manufacturing $64,000 Selling & administrative S 16,000 Show all your workings A customer wants to buy 15,000 units at a price of $20 per unit. All fixed cost will decrease by 10% if the special order is accepted. Variable manufacturing costs would increase by 15% per unit for the special order only REQUIRED Determine whether the company should produce the special order or not Show all workings and use the format provided in review
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