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university of california Operations And Supply Chain Management Assignment Help - HELP!


Question - Piersall Company makes a variety of paper products. One product is 20 lb copier paper, packaged
5,000 sheets to a box. One box normally sells for $18. A large bank offered to purchase 3,000 boxes
at $14 per box. Costs per box are as follows:
Direct materials $8
Direct labor 3
Variable overhead 1
Fixed overhead 5
No variable marketing costs would be incurred on the order. The company is operating significantly
below the maximum productive capacity, but they are above breakeven. No fixed costs are avoidable.
Should Piersall accept the order?
a. It doesn't matter, there will be no impact on income
b. No, income will decrease by $3,000
c. Yes, income will increase by $6,000
d. Yes, income will increase by $9,000
e. No, inc ...Read More

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