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Determine whether waterloo co should accept special order

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Reference no: EM132533659

Waterloo Co. sells product P-14 at a price of $49 a unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $16 (75% variable). Waterloo Co. has sufficient capacity to accept a special order for 39,100 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit.

Question 1: Determine whether Waterloo Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

Reference no: EM132533659

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