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Special order - 17 minutes Dancer Company makes dance shoes. The company normally sells 8,000 pairs of shoes but has the capacity to make up

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Special order - 17 minutes Dancer Company makes dance shoes. The company normally sells 8,000 pairs of shoes but has the capacity to make up to 10,000 pairs of dance shoes. At their current level of production, the company has the following costs for producing and selling its products: Per unit Al capacity (10.000 units) $12.00 120,000 5.00 50,000 3.00 30,000 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Total costs 4.50 45.000 5.50 55.000 $300,000 $30.00 A pair of shoes normally sells for $55. An order has been received for 300 pairs of shoes. However, the buyer has requested a price of $30 due to the large size of the order if the order were accepted it would not affect the company's regular sales. There would be no sales commissions and fixed costs would not be affected for the order. In addition, the company that put in the order would like sequins added to the shoes, which would increase materials costs by 50,50 per pair and increase labour costs by $0.25 per pair. In addition, the company would need to purchase a new machine at a cost of $2.100. Required: aj Determine the net dollar advantage or disativantage of accepting the order b) Assume that in addition to the sequins, the company placing the order would like each pair shoes to have a face overlay. This process can only be done by hand and would increase tabour costs by $3,00 per pair of shoes should the company accept the order

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