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Question - The following are the details of a Product Zebra of Cross Roads Ltd.:
Particulars Rs. Selling price 300
Direct material 40
Direct labor 30
Variable manufacturing overhead 24
Fixed manufacturing overhead 60
Shipping and handling 6
Fixed selling costs 20
The company has received a special one-time order for 1,000 units of product Zebra. Assume that the company is operating at full capacity and that the contribution margin of the output that would be displaced by the special order is Rs. 20,000. Compute the minimum price that is acceptable for this one-time special order.
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