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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
11-32Â Â Â Special Order Marshall Company recently approached Johnson Corporation regarding manufac- turing a special order of 4,000 units of product CRB2B. Marshall would reimburse Johnson for all variable manufacturing costs plus 35 percent. The per-unit data follow:
Â
Â
|
Unit sales price |
$28 |
|
Variable manufacturing costs |
13 |
|
Variable marketing costs |
5 |
|
Fixed manufacturing costs |
4 |
|
Fixed marketing costs |
2 |
Â
Johnson would have a retooling cost of $12,000 for the special order. Johnson has no alternative use of capacity.
Required   Should the special order be accepted?
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