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title management accounting Read the following details carefully. 1) In a month, Al Zain Company normally produces and sells 25000 units. The selling price per
title management accounting
Read the following details carefully. 1) In a month, Al Zain Company normally produces and sells 25000 units. The selling price per unit is OMR 75 and there is excess capacity to produce an additional unit of 15000. Variable manufacturing cost per unit is OMR 30 Total fixed manufacturing costs are OMR 40,000 Variable operating cost is OMR 15 per unit and fixed operating costs total OMR 30,000 A customer placed a special order for 7500 nnits for OMR 50 each. The customer is willing to shoulder the delivery costs; hence the business will NOT incur additional variable operating costs of OMR 15. a) Should the company accept or reject the special order? Justify your answer b) What if the order was for 14000 units at a selling price of OMR 45Step by Step Solution
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