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TB MC Qu. 4-29 The Minton Company has gathered the following... The Minton Company has gathered the following information for a unit of its most
TB MC Qu. 4-29 The Minton Company has gathered the following... The Minton Company has gathered the following information for a unit of its most popular product: S 10 Direct materials Direct labor Overhead (40% variable) Cost to manufacture Desired markup (50%) Target selling price The above cost information is based on 4,400 units. A foreign distributor has offered to buy 1,400 units at a price of $20 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by: S2.800. O O $1,400 $2.240. $5,600
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