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Business, 26.02.2021 06:00 nando3024

Question 1: Special order Sales volume in units 110 Revenue $11,000 Variable costs $3,300 Contribution margin $7,700 Fixed costs $1,600 Profit $6,100 Special order: A client wants to buy 10 units at a discounted price of $40 per unit. This is a one-time deal (i. e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status quo (no special order) total amounts after adding the special order Revenue $11,000 Variable costs $3,300 Contribution margin $7,700 Fixed costs $1,600 Profit $6,100 Should you take the special order

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Question 1: Special order Sales volume in units 110 Revenue $11,000 Variable costs $3,300 Contributi...
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