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Novak Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials
$15, direct labour $12, and overhead $16 (75% variable). Novak has no excess capacity to accept
a special order for 38.200 units, at a discount of 25% from the regular price. Selling costs
associated with this order would be $3 per unit. Indicate the net income (loss) that Novak would
realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g.
-15,000 or parenthesis, e.g. (15,000).)

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Novak Co- sells product P-14 at a price of $48 a unit- The per-unit co.pdf

  • 1. Novak Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and overhead $16 (75% variable). Novak has no excess capacity to accept a special order for 38.200 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Novak would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)