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Alder Company produced and sold 30,000 units of product and is operating at 80% of plant capacity. Unit information about its product is as follows:
Sales Price $70Variable manufacturing cost $45Fixed manufacturing cost ($300,000 ÷ 30,000) 10 55Profit per unit $15
The company received a proposal from a foreign company to buy 6,000 units of Alder Company's product for $50 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Alder Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order.
InstructionsPrepare a schedule reflecting an incremental analysis of this proposal and indicate the effect the acceptance of this order might have on the company's income.
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MBA 640 Exam 1: Spring 1, 2014: Determine whether Deep Blue should accept this special sales order. Identify long-term factors Deep Blue should consider in deciding whether to accept the special sales order.
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Ensnada Mfg. Co, rpoduces candles that contain four raw materials: wax, dye, scented oil and a wick. Each candle usues eight ounces of wax and one ounce of die, which Ensinada purchase for $0.15 and $0.02 per ounce, respepctively.
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