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Question 5 Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $13, labour of $19, variable overhead of $4, and fixed
Question 5 Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $13, labour of $19, variable overhead of $4, and fixed overhead of $6. Each shelf normally sells for $49. A customer is offering to buy 1,500 units at $43 each. Shelf-It will incur additional costs of $1 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Reject Order Accept Order Incremental Revenue and Costs Revenues Costs Net income (loss) $ (b) Should Shelf-It accept the special order
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