Baby Company manufactures dolls that are sold to various distributors. The company produces at full capacity...
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Baby Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 70% of capacity for the other six months of the year. The company has provided the following data for the year: Number of units produced and sold Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $500,000 Baby receives an offer to produce 7000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order? 600,000 $30 $10 $1,000,000 $3 units per unit per unit per year per unit per year Baby Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 70% of capacity for the other six months of the year. The company has provided the following data for the year: Number of units produced and sold Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $500,000 Baby receives an offer to produce 7000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order? 600,000 $30 $10 $1,000,000 $3 units per unit per unit per year per unit per year
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