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Business, 02.03.2021 01:00 episodegirl903

Premium Co. produces park benches. A customer has offered Premium Co. $700 per unit for 100 units. The normal selling price is $850 per bench. To fill the order, Chris would incur unit-level costs of $500 per unit and batch-level costs of $15,000. Premium Co. also incurred $20,000 of product-level costs to design the bench and $200,000 of facility-level costs. Based on the differential revenues and costs, Premium Co. should the special order.

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Premium Co. produces park benches. A customer has offered Premium Co. $700 per unit for 100 units. T...

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