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The cost to produce one unit of the product is:
Material $ 12.00
Labor $ 9.00
Variable cost $ 6.00
Fixed expenses $ 18.00
Total fixed expenses: $ 1,440,000
The companys normal capacity is 100,000 units. The figures given above are for 80,000 units.
The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer.
Advice the manufacturer on whether the order should be accepted. (clear tables not photo)
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