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The Young Company has gathered the following information for a unit of its most popular product: $18 6 10 Direct materials Direct labor Overhead (408
The Young Company has gathered the following information for a unit of its most popular product: $18 6 10 Direct materials Direct labor Overhead (408 variable) Cost to manufacture Desired markup (50%) Target selling price 34 17 $51 The above cost information is based on 10,600 units. A distributor has offered to buy 2,300 units at a price of $37 per unit. This special order would not disturb regular sales. Special packaging and other selling expenses would be an additional $0.60 per unit for the special order. If the special order is accepted, Young's operating profits will increase by: Multiple Choice $19,320. $6.900 $4,600. $5,520
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