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Sienna Company produces surfboards. A customer has offered Sienna $400 a unit for 100 units. To fill the special order, Sienna would incur unit-level costs
Sienna Company produces surfboards. A customer has offered Sienna $400 a unit for 100 units. To fill the special order, Sienna would incur unit-level costs of $350 per unit and batch-level costs of $5,500. Sienna also incurred $70,000 of product-level costs to design the board and $10,000 of facility-level costs. Based on your quantitative analysis, should Sienna Company accept the special order? Multiple Choice No, differential revenue is $5,000 less than differential costs. Yes, differential revenue is $500 greater than differential costs. No, differential revenue is $500 less than differential costs. Yes, differential revenue is $5,000 greater than differential costs.
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