17. Given the following data for Tan company:

Sales (in units): 60,000

Selling Price per unit: $28

Manufacturing Cost per unit

Material = $5

Direct Labor $4

Overhead

Variance = 4

Fixed = 10

Total. = 23

Gross margin = 5

Selling and admin expenses per unit = 2

Operating = 3

A Company in a foreign market offer to buy and the offer specifies the following data:

Units to be sold: 10,000

Price/Unit = $13.10

What is the logical decision about this special offer:

a. Do not reject the special offer

b. Reject the special offer

c. Indifferent to reject or not the special offer

d. Always accept the special offer.

18. Diferencial costs are used in operation budgeting.

True or False