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Business, 05.05.2020 06:01 nakeytrag

The Young Company has gathered the following information for a unit of its most popular product: Direct materials $ 11 Direct labor 5 Overhead (40% variable) 20 Cost to manufacture 36 Desired markup (50%) 18 Target selling price $ 54 The above cost information is based on 11,100 units. A distributor has offered to buy 2,600 units at a price of $38 per unit. The distributor claims this special order would not disturb regular sales at $54. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable

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