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The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) Cost to
The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) Cost to manufacture Desired markup (50%) Target selling price The above cost information is based on 10,300 units. A distributor has offered to buy 2.200 units at a price of $35 per unit. The distributor clolms this special order would not disturb regular sales at $48. Special packaging and other selling expenses would be an additional $0.60 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable
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