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Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $13, labour of $17, variable overhead of $4, and fixed overhead of
Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $13, labour of $17, variable overhead of $4, and fixed overhead of $4. Each shelf normally sells for $50. A customer is offering to buy 1,700 units at $39 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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