1. Live Oak Products has an annual plant capacity to pro- duce 50.000 units. Its...
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1. Live Oak Products has an annual plant capacity to pro- duce 50.000 units. Its predicted- operations for the year follow: $800,000 Sales revenue (40,000 units at $20 each) Manufacturing costs Variable... Fixed Selling and administrative costs Variable (commissions on sales). Fixed $8 per unit $200,000 $2 per unit $40,000 a.- Should the company accept a special order for 4,000 units at a selling price of S15 cach, which is subject to half the usual sales commission rate per unit? b. Assume no effect on fixed costs or regular sales at regular prices. What is the effect of the decision on the company's operating profit
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