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Boone Products Had the Following Unit Costs A One-Time Customer Has Offered to Buy 2,000 Units at materials

Question 36

Multiple Choice

Boone Products had the following unit costs:  Direct materials $24 Direct labour 10 Variable factory overhead 8 Fixed factory overhead (allocated)  18\begin{array}{lr}\text { Direct materials } & \$ 24 \\\text { Direct labour } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array} A one-time customer has offered to buy 2,000 units at a special price of $48 per unit.Because of capacity constraints,1,000 units will need to be produced during overtime.Overtime premium is $8 per unit.Suppose the special order is accepted.How much additional profit (loss) will be generated?


A) a $30,000 loss
B) a $24,000 loss
C) a $4,000 loss
D) a $4,000 profit

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