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Read the Case Exercise Cost Analysis (pp. 327-328 of the Textbook)
- Answer the following questions:
1. Calculate the incremental, or marginal, cost per chair to Leisure Products of accepting the order from Southeast?
2. What assumptions did you make in calculating the incremental cost in Question 1? What additional information would be helpful in making these calculations?
3. Based on your answers to Questions 1 and 2, should Leisure Products accept the Southeast order?
4. What additional considerations might lead Leisure Pro