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Sharp Company buys products from its suppliers that it resells to its customers. There are two activities in this company summarized as follows: Order taking
Sharp Company buys products from its suppliers that it resells to its customers. There are two activities in this company summarized as follows: Order taking and preparation - Total Cost $500,000 and practical Capacity 5,000 hours; Packaging and shipping - Total Cost $800,000 and practical Capacity 2,000 hours. Each order requires 8 minutes per item ordered to take the order and prepare it, and 2 minutes per item to pack and ship. A customer has just submitted an order for 30 items. The price that will be charged for this order is $180 per item. The price paid to Sharp's supplier for each item in this order is $150. What is the profit that Sharp Company will earn on this order? $100 $500 $900 None of the above
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