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The following are Hydrangea Company's cost of making and selling an item: A one-time only special order has been received for 800 units. The company
The following are Hydrangea Company's cost of making and selling an item: A one-time only special order has been received for 800 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is $20 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $4 per unit for specialized materials and a new machine that costs $5,000. What is the financial advantage or disadvantage of accepting the special order? A. $5,800 disadvantage B. \$800 disadvantage C. $2,600 disadvantage D. $600 advantage
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