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Uurrent Attempt in Progress Magnum Beverages sells it premium champagne at $55 per bottle. It currently costs $40 per bottle to produce each bottle of
Uurrent Attempt in Progress Magnum Beverages sells it premium champagne at $55 per bottle. It currently costs $40 per bottle to produce each bottle of champagne. Magnum has overhead costs of $1,800 per month. If Magnum produced and sold 100 bottles of champagne last month, has the company adequately priced each bottle of champagne to make a positive monthly operating income? No, because the revenues from the sales is less than the total costs incurred. Yes, since the revenues from the sales exceeds the total costs incurred. This cannot be determined due to lack of sufficient information. No, because the revenues from the sales just equals the total costs incurred. Special orders are evaluated for acceptance in the long-term. by only comparing the unit selling price of the special order with the regular unit selling price. by only comparing the costs of the two options. in the short-term
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