8.4 Special order pricing Freeman Corporation has the excess manufacturing capacity to fill a special...
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Accounting
8.4
Special order pricing
Freeman Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Freeman's normal costing process, variable costs of the special order would be $27,500 and fixed costs would be $38,000. of the fixed costs, $8,500 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order.
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What is the minimum price Freeman should quote to Nash?
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