b. Hoover Company produces a product that sells for $168 per unit. The product cost...
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b. Hoover Company produces a product that sells for $168 per unit. The product cost per unit using absorption costing is $140. A customer contacts Hoover and offers to purchase 4,000 units of this product for $136 per unit. Variable costs of goods sold with this order would be $60 per unit, and variable selling and administrative costs would be $36 per unit. The special order would not require any additional fixed costs. Hoover has sufficient capacity to produce this special order without affecting regular sales. (a) Compute contribution margin for this special order. (b) Should Hoover accept this special order
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