Khan Manufacturing incurs the following unit manufacturing cost in producing its sport earbuds:
A special order for 2,000 units has been received. The unit price requested is $65. The normal unit price is $90. If the special order is accepted, the amount of contribution margin that will be realized assuming there is sufficient capacity to produce the special order.
A) $(50,000)
B) ($20,000)
C) $30,000
D) $80,000
Correct Answer:
Verified
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