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Elhard Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 27,000 units per month is as follows:
An order has been received from an overseas customer for 1,900 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.20 less per unit on this order than on normal sales.
Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 190 units for regular customers. The minimum acceptable price per unit for the special order is closest to:
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On January 1, 2010, Priscilla signed a FIVE year lease to rent office space from Marjorie. The lease commenced immediately on January 1, 2010. During 2010, Priscilla paid Marjorie $24,000 for the first year's rent, $2,000 for the last month's rent..
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