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Problem 1: Company A currently producing 300 000 units of shirts per month. They are able to produce 50 000 more units within their maximum capacity. The sales price is RM13 per unit. Another company offered to buy 50 000 units at price of RM 500 000. Should they accept the special order?
RM
Direct material 6
Direct labor 2
Fixed overhead 2
Variable overhead 1
TOTAL COST
Problem 2: Define discretionary and committed fixed cost with example.
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Computation of Free Cash Flow
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