Essay
Elton's Electronics is a wholesale distributer for TVs and other electronics and appliances.The selling price of TV Model 83G7 is $799.The standard cost for Model 83G7 includes $300 direct material, $30 direct labor and $200 manufacturing overhead (75% variable, 25% fixed).Elton has received a special order for 200 Model 83G7s at a price of $450 each.The only additional cost of accepting the special order is a sales commission of $9 per unit.The special order is to a retail store that will not be in competition with any other Elton customers.Ignoring qualitative factors, should Elton accept the special order?
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Correct Answer:
Verified
Elton should not accept the special ord...View Answer
Unlock this answer now
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