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Question 8 (5 points) Saved 4) Listen Decab Co. makes and sells electric fans. Each fan regularly sells for $42. Product cost data per
Question 8 (5 points) Saved 4) Listen Decab Co. makes and sells electric fans. Each fan regularly sells for $42. Product cost data per fan is shown below. Direct materials Direct labor $8 $9 $10 Manufacturing overhead (80% variable and 20% unavoidable fixed) A special order has been received by Decab for a sale of 25,000 fans to an overseas customer. The special order would require $4 per fan for shipping. Decab has a capacity to produce 120,000 fans per period. Decab is now selling 120,000 fans through regular channels each period, which require $1 per fan for shipping. What is the opportunity cost if Decab accepts the special order? $400,000 $425,000 $1,050,000 $450,000
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