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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 401 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
[CPA Adapted] Mike Products sells product A at a selling price of $40 per unit. Mike’s cost per unit based on the full capacity of 500,000 units is as follows: Direct materials $ 6 Direct labor 3 Indirect manufacturing (60% of which is fixed) 10 $19 A one-time-only special order offering to buy 50,000 units was received from an overseas distributor, but they only willing to pay $20 per unit. Other costs that would be incurred on this order would be $4 per unit for shipping. Mike has sufficient existing capacity to manufacture the additional units. Should Mike accept the order? Explain your answers and provide numbers to back it up.
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