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Business, 13.11.2019 23:31 charismameeks

Acompany is considering a special order for 1,000 units to be priced at $8.90 (the normal price would be $11.50). the order would require specialized materials costing $4.00 per unit. direct labor and variable factory overhead would cost $2.15 per unit. fixed factory overhead is $1.20 per unit. however, the company has excess capacity and acceptance of the order would not raise total fixed factory overhead. the warehouse, however, would have to add capacity costing $1,300. which of the following is relevant to the special order?
a.$8.90 selling price per unit of special order
b.$1.20 fixed factory overhead per unit
c.$11.50 normal selling price
d.$7.35 spent on donuts and coffee
e. none of these choices are correct.

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