Company makes and sells a product that regularly sell for $38.95 each. The following information is...
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Company makes and sells a product that regularly sell for $38.95 each. The following information is available for the current year: Annual maximum capacity in units Current annual production in units Budgeted absorption cost per unit: Direct materials Direct labor Manufacturing overhead (70% variable) 6,500 6,200 -1 $9.95 $2.65 $3.40 A new customer approached the company with a one-time all-or-nothing order for 900 units. The special-order units are identical to the regular ones, with one exception: the customer would like their business logo engraved on each unit. It will cost $2.5 to engrave the logo. Q: The minimum total sales revenue from the special order that would be acceptable to the A: $ company is: Company makes and sells a product that regularly sell for $38.95 each. The following information is available for the current year: Annual maximum capacity in units Current annual production in units Budgeted absorption cost per unit: Direct materials Direct labor Manufacturing overhead (70% variable) 6,500 6,200 -1 $9.95 $2.65 $3.40 A new customer approached the company with a one-time all-or-nothing order for 900 units. The special-order units are identical to the regular ones, with one exception: the customer would like their business logo engraved on each unit. It will cost $2.5 to engrave the logo. Q: The minimum total sales revenue from the special order that would be acceptable to the A: $ company is:
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