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Should Kido accept this special order

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Reference no: EM133096714

Question - The Kido Company manufactures widgets that sell for $120 each. The company's unit cost for each widget is as follows:

Direct Materials $30

Direct Labor $40

Variable Manufacturing Overhead $10

Fixed Manufacturing Overhead $20

Per Unit Cost $100

A company in another state has offered to purchase 1,000 widgets from Kido Company at a cost of $90 each.

If Kido were to accept this special order, no additional Fixed Manufacturing Overhead costs would be incurred.

Should Kido accept this special order? Show relevant calculations.

Reference no: EM133096714

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