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The Kido Company manufactures widgets that sell for $120 each. The company's unit cost for each widget is as follows: Direct Materials $30 Direct Labor
The Kido Company manufactures widgets that sell for $120 each. The company's unit | ||||||
cost for each widget is as follows: | ||||||
Direct Materials | $30 | |||||
Direct Labor | $40 | |||||
Variable Manufacturing Overhead | $10 | |||||
Fixed Manufacturing Overhead | $20 | |||||
Per Unit Cost | $100 |
A company in another state has offered to purchase 1,000 widgets from Kido Company at a cost of $90 each.
If Kido were to accept this special order, no additional Fixed Manufacturing Overhead costs would be incurred.
Should Kido accept this special order? Show relevant calculations.
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