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Determine whether waterloo co. should accept special order

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Problem 1: Waterloo Co. sells product P-14 at a price of $47 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Waterloo Co. has sufficient capacity to accept a special order for 36,100 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Determine whether Waterloo Co. should accept the special order.

Reference no: EM132965559

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