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tra Practice Special Order Decision Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Apple Corporation manufactures

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tra Practice Special Order Decision Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Apple Corporation manufactures and sells the l-Pod Nano. Here are the unit costs: A large charitable organization has offered to purchase 5,000 Shuffles this month to give away to children, but only if Apple Corporation is willing to accept a 40% discount off the regular price of $50 There would be no sales commissions on this order; thus, variable selling expenses would be slashe by 70%. However, Apple Corporation would have to purchase a special machine to engrave the charitable organization's name on the 5,000 units. This machine would cost $12,000. This would be one-time order that would have no effect on regular sales. How much would Apple make or lose) this offer? $12.00 10.00 2.00 4.00 6.00 4.00 Total cost $38.00 Per Unit 5,000 Units Special Price Incremental Variable Costs Direct Materials Direct Labor $12.00 Variable Overhead 2.00 $6.00 30.00 Variable Selling Total Variable Costs Contribution Margin Fixed Overhead/Fixed Selling Incremental Fixed cost Increase (decrease) in operating income What's your decision? What's the minimum selling price you would accept

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