Determine whether sheridan co. should accept the special

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Reference no: EM133342136

Question: Shreridan Co. sells product P-14 at price of $46 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Sheridan Co. has sufficient capacity to accept a special order for 35,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Sheridan Co. should accept the special order.

Reference no: EM133342136

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