(Solved):Henderson Corporation has received a request for a special order of 9,700 units of product XYZ…

 

Question

Henderson Corporation has received a request for a special order of 9,700 units of product XYZ for $47.20 each. The normal selling price of this product is $52.30 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product XYZ is computed as follows:

Direct materials $18.00
Direct labor 7.30
Variable manufacturing overhead 4.50
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