Say Company A has capacity to produce 100,000 units of product X. The cost estimate per unit
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Say Company A has capacity to produce 100,000 units of product X. The cost estimate per unit based on current capacity of 80% is as follows:$ Per unitDirect material$2.00Direct labor$5.00Variable production overhead$3.00Fixed production overhead$4.00Total$14.00The company sells the product X to its regular customer at $20.00. However, a non- regular customer has approached the company to purchase the excess capacity at $18 each.
Required
_______________________after accept the order company will get additional revenue
________________________after accept the order company will Paidadditional cost
__________________________after accept the order company will get additional Profit
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