Homework Answers
| Analysis of Special Order | |
| Sales revenue ( 20,000 x 1.60) | 32,000 |
| Expenses: | |
| variable Manufacturing cost ( 20,000 x 1.45) | -29,000 |
| Special machine | -9,000 |
| Net Loss | -$6,000 |
Special order should not be accepted since if it is accepted, it will result in a loss of $6,000.
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