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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) S 13
The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) S 13 Cost to manufacture Desired markup (50%) Target selling price 15 34 17 S 51 The above cost information is based on 11,300 units. A distributor has offered to buy 2,600 units at a price of $35 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: $7800. o $1,560. O $2,600. O $24,960
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