Clean, Inc. cleans and waxes floors for commercial customers. The company is presently operating at less than capacity with equipment and employees idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $25,000. The size of the proposed job is 38,000 square feet. The company's normal service costs are as follows: Unit-level materials Unit-level labor Unit-level variable overhead 0.24 per square foot Facility-level overhead $0.34 per square foot $0.41 per square foot Allocated at $0.26 per square foot If the company accepts the special offer: Multiple Choice a. The company will lose $12,620 on the job b. The company will lose $22,500 on the job. c. The company will earn $12,080 on the job. d. The company will lose S3,500 on the job.
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