Special Order Lopez Corporation sells a product for $18 per unit, and the standard cost...
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Special Order Lopez Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs: Direct material $ 1 Direct labor 2 Overhead (80% fixed) 10 Total $13 Refer to Lopez Corporation. Lopez received a special order from a foreign customer for 1,000 units of the product for $12. If Lopez has sufficient capacity, should the order be accepted? How would accepting this order affect its pre-tax income?
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