Munoz Company manufactures a personal computer designed for use in schools and markets it under...
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Munoz Company manufactures a personal computer designed for use in schools and markets it under its own label. Munoz has the capacity to produce 28,000 units a year but is currently producing and selling only 17,000 units a year. The computer's normal selling price is $1,800 per unit with no volume discounts. The unit-level costs of the computer's production are $490 for direct materials, $120 for direct labor, and $130 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Munoz during the year are expected to be $2,220,000 and $818,000, respectively. Assume that Munoz receives a special order to produce and sell 3,070 computers at $1,290 each
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Munoz Company manufactures a personal computer designed for use in schools and markets it under its own label. Munoz has the capacity to produce 28,000 units a year but is currently producing and selling only 17,000 units a year. The computer's normal selling price is $1,800 per unit with no volume discounts. The unit-level costs of the computer's production are $490 for direct materials, $120 for direct labor, and $130 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Munoz during the year are expected to be $2,220,000 and $818,000, respectively. Assume that Munoz receives a special order to produce and sell 3,070 computers at $1,290 each 