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FOX Furniture received a special order for 10 dining room sets for a special price of $5,000. The materials and direct labor for each dining room set...

   FOX Furniture received a special order for 10 dining room sets for a special price of $5,000. The materials and direct labor for each dining room set is $150. In addition, the setup, supervision and other overhead costs are $200 per dining room set. Should FOX accept the special order? Why or why not? Would it make any difference to you answer if FOX is at full capacity and its current line of dining room sets sell for $600.? (show all your work)

Top Answer

Answer Yes FOX should accept the special order, because it will increase net income by $ 1500... View the full answer

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