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X Company produces and sells 66,200 units of its regular product each year for $15.00 each. The following cost information relates to this production Total
X Company produces and sells 66,200 units of its regular product each year for $15.00 each. The following cost information relates to this production Total Per-Unit Direct materials $101,286 $1.53 Direct labor [all variable] 1,47 97,314 Variable overhead 182,712 2.76 Fixed overhead 130,414 1.97 Variable selling 78,116 1.18 Fixed selling 91,356 1.38 A company has offered to buy 4,710 units for $11.78 each. Because the special order product unit, and some special equipment will have to be rented for 1. Profit on the special order is slightly different than the regular product, direct material costs will increase by $0.25 per total of $20,000. Tries 0/3 Submit Answer 2. Assume that if X Company accepts the special order, regular sales will fall by 1,150 units. Independent of #1, the effect of the fall in regular sales will be to decrease company profit by
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