Business, 24.03.2020 05:28 sethlynn2003
You are analyzing cost data for your boss related to a special order your company is considering from a large customer in Singapore. The following data are applicable to the product being ordered: Normal unit sales price: $49.95 Variable unit manufacturing costs: $10.50 Variable unit selling and administrative costs: $18.25 The customer is requesting that the sales order be accepted on the following terms: The unit sales price equals the unit contribution margin plus 10% Freight will be paid by the customer Your company will pay a $5,000 "facilitating payment "to a "friend of the customer" to get the product through customs more quickly. Your boss has told you this is a very important customer. Furthermore, this order will help some employees earn a little extra holiday money with overtime.
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