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university of california Operations And Supply Chain Management Assignment Help - accounting homework

Question - PROBLEM #3 %u2013 SPECIAL ORDER Wagner Company sells Product A for $21 per unit. If Wagner operates at full production capacity of 200,000 units, its manufacturing cost per unit are as follows: Direct materials $4.00 Direct labor 5.00 Overhead, 2/3 of which is fixed 6.00 Total $15.00 A special order for 20,000 units was received from a foreign distributor. The foreign distributor offered $14.50 per unit. The only selling costs on this order would be $3.00 per unit for shipping. Wagner has sufficient capacity to manufacture the additional units. Fixed overhead costs would not be affected if the special order is accepted. Required: (1) Compute the gain or loss if the customer%u2019s offer is accepted. (2) Calculate the price per u ...Read More

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