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Clean,IncCleans and Waxes Floors for Commercial Customers If the Company Accepts the Special Offer:
A) the Company

Question 38

Multiple Choice

Clean,Inc.cleans and waxes floors for commercial customers.The company is presently operating at less than capacity with equipment and employees idle at times.The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $4,500.The size of the proposed job is 11,000 square feet.The company's normal service costs are as follows: Unit-level materalsUni-level laborUnit-level variable overheadFacility-level overhead$0.18 per square foot$0.25 per square foot$0.08 per square footAllocated at $0.10 ner square foot\begin{array}{c}\begin{array}{|l|}\hline \text {Unit-level materals}\\\hline \text {Uni-level labor}\\\hline \text {Unit-level variable overhead}\\\hline \text {Facility-level overhead}\\\hline \end{array}\begin{array}{l|}\hline \text {\( \$ 0.18 \) per square foot}\\\hline \text {\( \$ 0.25 \) per square foot}\\\hline \text {\( \$ 0.08 \) per square foot}\\\hline \text {Allocated at \( \$ 0.10 \) ner square foot}\\\hline \end{array}\end{array}
If the company accepts the special offer:


A) The company will lose $1,110 on the job.
B) The company will lose $2,210 on the job.
C) The company will lose $230 on the job.
D) The company will earn $2,520 on the job.

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