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Waterway Ltd. incurs the following costs to make each custom-made shelf: materials of $8, labour of $19, variable overhead of $3, and xed overhead of
Waterway Ltd. incurs the following costs to make each custom-made shelf: materials of $8, labour of $19, variable overhead of $3, and xed overhead of $5. Each shelf normally sells for $44. A customer is offering to buy 1,650 units at $37 each. Waterway will incur additional costs of $2 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Reject Order Accept Order Incremental Revenue and Costs Revenues $ $ $ Costs $ $ Net income I (loss) (b1 Should Waterway accept the special order
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