Delight Inc. has the capacity to produce 250,000 units of its product. It only plans...
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Accounting
Delight Inc. has the capacity to produce 250,000 units of its product. It only plans on producing 175,000 units this year at a price of $17.00 per unit. It has fixed costs of $225,000 and typical unit costs as follows: Direct materials per unit: $5.00 Direct labor per unit: $4.00 Variable overhead per unit: $3.00 Fixed overhead per unit: $3.00 Total cost per unit: $15.00 A customer approaches Delight Inc. with an offer to purchase 60,000 units at $9.00 per unit. Create an accept or reject analysis for this offer
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