Alpha company normally sells its product

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Alpha Company normally sells its product for $20 per unit. It just received a large order from a new customer at a selling price of $16 per unit. The current cost to produce a unit is $15 (direct materials, $8; direct labor, $2; unit-related overhead, $3; and facility-sustaining overhead, $2 per unit). Alpha has the capacity to produce this special order.

Reference no: EM13919786

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