Hydro Ltd normally produces and sells 26 000 units of its product each month. In addition to
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Hydro Ltd normally produces and sells 26 000 units of its product each month. In addition to these, it has the capacity to produce and sell on special order, another 4 000 units at a price of R87.50 per unit.
The average full cost of the 30 000 units would be R95, and the incremental cost per unit of the special order is R62.50. Calculate the average full cost per unit for the normal production of 26 000 units.
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