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Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $12, labour of $16, variable overhead of $5, and fixed overhead of
Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $12, labour of $16, variable overhead of $5, and fixed overhead of $7. Each shelf normally sells for $47. A customer is offering to buy 1,250 units at $42 each. Shelf-It will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Accept Order Incremental Revenue and Costs Reject Order $ $ Revenues Costs Net income / (loss) (b) Should Shelf-It accept the special order
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