Firm A has capacity to produce 100,000 units of product X. The cost estimate per...
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Firm A has capacity to produce 100,000 units of product X. The cost estimate per unit based on current capacity of 80% is as follows: $ Per Unit (at the Production level of 80,000 units) $ 5.00 Direct Material Direct Labour $3.00 $2.00 $4.00 $1.00 $2.00 Variable Production Overhead Fixed Production Overhead Shipping Costs Sales Commission $3.00 Fixed Selling Overhead Total Cost per Unit Selling Price $20.00 $25.00 A non-regular customer has approached the company to purchase 20,000 units at $16 each Required: Should Firm A accept this special order
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