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Should the company accept the order

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Reference no: EM132502300

A company is negotiating with a customer for the sale of XYZ. The cost recorded for stock valuation purposes is:

                                 f
Direct materials          200
Direct labour             150
Fixed overheads          300
                                650

Question 1: The maximum selling price that can be negotiated is f500 per unit for an order of 100 units over the next three months. Should the company accept the order?

Reference no: EM132502300

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