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Business, 23.03.2020 20:31 evazquez

Lasso Corporation manufactures a product with the following full unit costs at a volume of 4,000 units: Direct materials $ 200 Direct labor 80 Manufacturing overhead (30% variable) 150 Selling expenses (50% variable) 50 Administrative expenses (10% variable) 80 Total per unit $560 A company recently approached Lasso’s management with an offer to purchase 400 units for $500 each. Lasso currently sells the product to dealers for $800 each. Lasso’s capacity is sufficient to produce the extra 400 units. No selling expenses would be incurred on the special order. If Lasso’s management accepts the offer, profits will:

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