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B Company produces luggage that it sells at $80 each It has orders for 1000 luggage for which the buyer is prepared to pay $60 per un 2000 luggage at $48 each The following information is

 B Company produces luggage that it sells at $80 each. It has orders for: (a) 1000 luggage for which the buyer is prepared to pay $60 per un 2000 luggage at $48 each. The following information is available. Direct material per luggage Direct labor per luggage 21 32 Required: (1) Calculate the contribution per luggage of the order a. (2) Calculate the contribution per luggage of the order b. (3) State whether B company should accept either of the orders.

Aug 30 2020 View more View Less

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