Question

Graham Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Graham's normal costing process, variable costs of the special order would be $15,000 and fixed costs would be $25,000. Of the fixed costs, $4,000 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order.

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What is the minimum price Graham should quote to Nash?



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  • CreatedFebruary 21, 2014
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