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Smith Corp. is considering a special one-time order of its product. The item currently sells for $15 per unit and has the following costs: Direct
Smith Corp. is considering a special one-time order of its product. The item currently sells for $15 per unit and has the following costs: Direct materials Direct labor Variable overhead Fored overhead $2.00 3.50 1.00 6.00 The special order will be priced at $12.00 per unit and will incur a sales commission of $1.20 per unit. Smiths benetloss from accepting this order is excess capacity and feed overhead not be impacted the per unit a. (50.50) b. $3.20 c. (51.70) d. $4.30
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