Links, Incorporated produces golf gloves. The gloves sell for $16 each. Variable costs are $8.50 and fixed

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Links, Incorporated produces golf gloves. The gloves sell for $16 each. Variable costs are $8.50 and fixed costs are $1.50 each. An Australian company has offered to pay $12 each for 2,000 gloves. The manufacturing capacity will not be affected by this special order and it will not affect regular sales. Fixed assets will not change but variable selling costs will increase by $1.75 a glove due to delivery costs.

Required: Answer the following questions: (A) What is the relevant cost per unit on this special order? (B) How will company profits be affected if Links accepts the Australian company's offer? (C) Should the company accept this special order? Why?

Posted Date: May 08, 2024 01:36 AM

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Links, Incorporated produces golf gloves. The gloves sell for $16 each. Variable costs are $8.50 and fixed

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Okay here are the answers A The relevant costs per unit on this special order ... View the full answer

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