(Solved):Shelf-It Inc. incurs the following costs to make each custom made shelf: materials of $14, labour…

 

Question

Shelf-It Inc. incurs the following costs to make each custom made shelf: materials of $14, labour of $14, variable overhead of $4 and ?xed overhead of $6. Each shelf normally sells for $45. A customer is offering to buy 1,550 units at $37 each. Shelf-It will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping.

a. Prepare an incremental analysis for the special order.

b.

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