Business, 09.07.2019 00:40 123userhi

Sky blue plans provides financial planning for senior citizens. the costs of preparing 800 financial plans in the prior year were: direct labor $400,000 variable overhead 296,000 fixed overhead 250,000 total cost $946,000 at the start of the current year, the company received an offer from moosehaven, a retirement home for moose members. moosehaven wants sky blue plans to prepare financial plans for its 150 assisted living citizens. sky blue has the capacity to prepare up to 1,000 plans in a given year, so this special order would not take away revenue from any of sky blue’s current clients. moosehaven is willing to pay $880 per plan. what will be the effect on sky blue plan’s profit if it agrees to prepare plans for the 150 citizens of moosehaven?

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Sky blue plans provides financial planning for senior citizens. the costs of preparing 800 financial...

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