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The Minton Company has gathered the following information for a unit of its most popular product: Direct materials ................................................... $12

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The Minton Company has gathered the following information for a unit of its most popular product:
Direct materials ................................................... $12
Direct labor ........................................................... 3
Overhead (40% variable) ........................................... 5
Cost to manufacture ............................................... 20
Desired markup (50%) ............................................ 10
Target selling price ............................................... $30
The above cost information is based on 5,100 units. A foreign distributor has offered to buy 2,100 units at a price of $24 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by:

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Direct Material 12 Direct Labor 3 Variable Overhead 5 40 100 1 3 C…View the full answer


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Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional. Since 2012 I am providing home tutions.
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Managerial Accounting

Managerial Accounting

ISBN: 978-1260413984

4th edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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Question Posted: March 21, 2018 04:39:16
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