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The following information relates to a product produced by Marigold Compl $20 Direct materials Direct labor Variable overhead Faced overhead Unit cost 15 Faced selling
The following information relates to a product produced by Marigold Compl $20 Direct materials Direct labor Variable overhead Faced overhead Unit cost 15 Faced selling costs are $650,000 per year, and variable selling costs are $10 per unit sold. Although production capacity is 400,000 units per year, the company expects to produce only 250,000 units next year. The product normally sells for $100 each. A customer has offered to buy 40,000 units for $80 each. The incremental cost per unit associated with the special order is: a $76. b. 584 c. $60 d. $90 O e 9 2 A2000 4 22
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