11 Clean, Inc. cleans and waxes floors for commercial customers. The company is presently...
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Clean, Inc. cleans and waxes floors for commercial customers. The company is presently operating at less than capacity, with equipment and employees idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $13,000. The size of the proposed job is 26,000 square feet. The company's normal service costs are as follows: Unit-level materials Unit-level labor Unit-level variable overhead Facility-level overhead $ 0.22 per square foot $ 0.29 per square foot $ 0.12 per square foot Allocated at $0.14 per square foot If the company accepts the special offer: Multiple Choice The company will lose $3,380 on the job. The company will earn $7,280 on the job. The company will lose $7,020 on the job. The company will lose $260 on the job
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