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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.
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