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- You expect to produce and sell 10 zizzles this year. You have a total manufacturing cost of $15 per unit. A supplier has offered
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You expect to produce and sell 10 zizzles this year. You have a total manufacturing cost of $15 per unit. A supplier has offered to manufacture and deliver these 10 zizzles for $20 per unit. What is the financial advantage(disadvantage) of taking them up on the offer?
($50)
$5
$50
($5)
You get a special order that will increase your sales by $100,000 but has a financial disadvantage of ($60,000). Do you accept the order?
Yes?
No?
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