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 materials$0.18 per square footUnit-level labor$0.25 per square footUnit-level variable overhead$0.08 per square footFacility-level overheadAllocated at $0.10 per square foot?If the company accepts the special offer:
A. The company will lose $230 on the job.
B. The company will earn $2,520 on the job.
C. The company will lose $1,110 on the job.
D. The company will lose $2,210 on the job.
Answer: C
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