Business, 14.11.2019 02:31, batmanmarie2004
Aurora enterprises incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. a wholesaler offers to buy 3,500 units at $36 each. this special order will result in additional shipping costs of $1.15 per unit. assuming aurora has adequate manufacturing capacity, it should
a : accept the offer because it will produce net income of $27,475.
b : reject the offer because it will lead to a net loss of $11,025.
c : accept the offer because it will produce net income of $31,500.
d : reject the offer because it will lead to a net loss of $7,000.
Answers: 2
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Aurora enterprises incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that...
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