Murphy's Paw produces and sells 1,000 units of a single product per year (with excess...
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Accounting
Murphy's Paw produces and sells 1,000 units of a single product per year (with excess capacity of 400 units). The full cost per unit at the 1,00-0 level of production is as follows: Direct material $6 Direct labor 14 Variable overhead 4 Allocated fixed overhead 3 The normal selling price is $50.00 per unit. An order has been received from an overseas company for 100 units at the special price of $40.00 per unit. What would the additional income (or loss) of taking on this special order?
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