Question
St. Nick Co., a toy manufacturer, is considering taking on a special order of dolls. Currently, the company has excess capacity. The following information
St. Nick Co., a toy manufacturer, is considering taking on a special order of dolls. Currently, the company has excess capacity. The following information has been collected: Units requested for special order. Normal selling price per doll: Selling price per doll for special order. Variable manufacturing costs per doll: Fixed manufacturing cost per doll: 1,000 dolls $20 $18 $15 $4 Using incremental analysis, should St. Nick Co. accept the special order?
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