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Clay co has considerable excess manufacturing capacity a

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Clay Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:

Fixed Costs         $21,000

Variable Costs     33,000

The fixed costs include a normal $3,700 allocation for the in-house design department, regardless of whether it is used. The customer has indicated she wants Clay to use external designers costing $7,750. What is the minimum acceptable price for the job?

Reference no: EM13571492

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