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The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor $16 7 Overhead (40% variable)
The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor $16 7 Overhead (40% variable) 15 Cost to manufacture Desired markup (508) 38 19 Target selling price $57 The above cost information is based on 10,400 units. A distributor has offered to buy 2,800 units at a price of $40 per unit. This special order would not disturb regular sales. Special packaging and other selling expenses would be an additional $0.40 per unit. for the special order. If the special order is accepted, Young's operating profits will increase by: Multiple Choice $5,600. $4,480. $8,400. $29,680
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