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ত S Able Companys unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special order for 2,000 units has been rec
Chapman Company manufactures widgets. Embree Company has approached Chapman with a proposal to sell the company widgets at a
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Answer #1

1. Incremental profit (Loss)

= Special order revenue - Variable Manufacturing cost

= (2,000*55) - [2,000*(50+2)]

= 110,000 - 104,000

= 6,000

Option B is the answer

.

.

87.

Relevant Cost of making = 46,500+43,500+24,000 = 114,000

Cost if bought = 125,000

Inctemental cost = 114,000-125,000 = 11,000

Option B is the answer

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