Take me to the text Sparrow Rollers Company produces bikes. Each bike has the following...
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Take me to the text Sparrow Rollers Company produces bikes. Each bike has the following costs. Direct Materials $9.00 Direct Labor $12.00 Variable Manufacturing Overhead $5.00 Allocated Fixed Manufacturing Overhead $11.00 Unit Cost $37.00 Note: The fixed manufacturing overhead is common to the company, The production capacity is 347,000 units per year. However, Sparrow Rollers expects to produce only 246,000 units for the coming year. The company also has foxed selling costs of $613,000 per year and variable selling costs of $6 per unit sold. Each bike normally sells for $40 each Recently, a customer offered to buy 49,000 bikes at a special price of $29 each. This order would not have any variable selling costs because no sales commissions are involved. Based on a quantitative analysis, should the company accept the special order? Do not enter dollar signs or commas in the input boxes Use the negative sign for values that must be subtracted and negative values Total Revenues $ 1421000 Total Direct Materials $ Total Direct Labor 5 Total Variable Overhead Incremental Operating Income The special order should be: Accepted
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