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Question 3 (2 points) Each year Jones Inc. makes and sells a unique product for their business. The details of the manufacturing process of this
Question 3 (2 points) Each year Jones Inc. makes and sells a unique product for their business. The details of the manufacturing process of this product are below: Capacity 30,000 units Selling Price $63 per unit Direct Materials 6 Direct Labour 2 Variable Production Overhead 15 Fixed Overhead 6 Variable Selling Expenses 2.5 Units sold during year 30,000 units Julius Inc. has made an offer to purchase 5,000 units on the condition a sticker on the product is changed. This deal would completely eliminate the variable selling expenses on the order. The new sticker would cost $1 per unit. If they charge the same price per unit, what is the gain/loss on accepting the special order? 22,500 loss 12,500 gain 7,500 loss 7,500 gain
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