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The N Corporation is under capacity and just received a special order from the H Corporation. The N Corporations normal costing process indicates that variable
The N Corporation is under capacity and just received a special order from the H Corporation. The N Corporations normal costing process indicates that variable costs of the special order would be $30,000 and fixed costs would be $20,000. Of the fixed costs, $7,500 would be for unavoidable overhead costs, and the remainder for rent on a special equipment needed for this order. What is the minimum price N Corporation should quote to H Corporation?
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