Special Order? Chapter 8: Special Orders Watson Company produces kitchen cabinets...
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Accounting
Special Order?
Chapter 8: Special Orders Watson Company produces kitchen cabinets for homebuilders across the United States. The following information relates to current production: Sales price per unit Variable costs per unit: $200 $170 $5 COGS Selling and administrative Total fixed costs: $400,000 $125,000 COGS Selling and administrative The company has been approached with a special order for 1,000 cabinets at a sales price of $165 per unit. Fixed costs would remain unchanged. Should the company accept the special order, and why? Show your work
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