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Ross has received a special order for 10,000 units of its product at a special price of $15. The product normally sells for $20 and
Ross has received a special order for 10,000 units of its product at a special price of $15. The product normally sells for $20 and has the following manufacturing costs: |
Per unit | |
Direct materials | $6 |
Direct labor | 3 |
Variable manufacturing overhead | 2 |
Fixed manufacturing overhead | 6 |
Unit cost | $17 |
Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company |
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