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Sol Ltd. manufactures unfinished chairs that sell for $45.50 each and cost $20 to make. The company has been considering finishing the chairs, which it
Sol Ltd. manufactures unfinished chairs that sell for $45.50 each and cost $20 to make. The company has been considering finishing the chairs, which it could then sell the chairs for $64.50) each. However, it has been determined that only 7,400 finished chairs could be sold; the other 1.750 chairs would continue to be sold unfinished. Costs per chair associated with processing further are: Direct materials $4.50 Direct labour 14.00 Variable overhead 4.00 If the company decides to process further, the incremental profit (loss) would be
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