The cost to produce one unit of the product is: Material SAR 13.00 Labor 8.00 Variable cost
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Question:
The cost to produce one unit of the product is:
Material SAR 13.00
Labor 8.00
Variable cost 7.00
Fixed expenses 18.00
Total fixed expenses: $ 500,000
The company has received a special order for 20,000 units for a price of SAR 36 per unit from a foreign customer.
Required:
Advice the manufacturer on whether the order should be accepted or not. (Show all working)
Expert Answer:
To determine whether the special order should be accepted or not we need to calculate the increm... View the full answer
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