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 $11,000. The size of the proposed job is 24,000 square feet. The company's normal service costs are as follows: Unit-level materials $ 0.20 per square foot Unit-level labor $ 0.27 per square foot Unit-level variable overhead $ 0.10 per square foot Facility-level overhead Allocated at $0.12 per square foot If the company accepts the special offer:
a. The company will earn $13,550 on the job.
b. The company will lose $8,050 on the job.
c. The company will lose $22,000 on the job.
d. The company will lose $36,850 on the job.
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