Cliffy Industries produces and sells 22,000 units of a single product. Costs associated with this...
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Accounting
Cliffy Industries produces and sells 22,000 units of a single product. Costs associated with this level of production are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead $15 per unit 45 per unit 25 per unit $40,000 The product normally sells for $160 per unit. Cliffy Industries has received a special order to sell 2,500 units at $130 per unit. Cliffy Industries has excess production capacity. b. Should the special order be accepted? Explain why or why not
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