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: If the company accepts the special offer:

Question

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:  If the company accepts the special offer:

Quizplus · Accepted Answer

Budgeted cost for production of 11,000 square foot (sf) special order:
 11ea7feb_d1d7_9590_a768_25a7369a34d4_TB3570_00_TB3570_00_TB3570_00 The other costs are not relevant because the company will incur them whether it accepts or rejects the special order.