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Windsor Ltd. incurs the following costs to make each custom-made shelf: materials of $10, labour of $14, variable overhead of $2, and fixed overhead
Windsor Ltd. incurs the following costs to make each custom-made shelf: materials of $10, labour of $14, variable overhead of $2, and fixed overhead of $5. Each shelf normally sells for $39. A customer is offering to buy 1,550 units at $32 each. Windsor will incur additional costs of $1 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/(loss) (b) Should Windsor accept the special order? Yes $ SA $
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