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2-22 Incremental Costs An engineering study has developed the following cost data for the production of product A: Factory Overhead Direct Direct Production Fixed (total)

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2-22 Incremental Costs An engineering study has developed the following cost data for the production of product A: Factory Overhead Direct Direct Production Fixed (total) Variable moo Labor Materials 0-1,000 units 1,001-2,000 units 2,001-3,000 units $1,000 $1,000 $2,000 $1/unit $1/unit $1/unit $2/unit $2/unit $2/unit $3/unit $3/unit $3/unit (1) If the current production level is 1,500 units, what is the incremental cost of pro- ducing an additional 200 units? (2) If the current production level is 1,500 units, what is the incremental cost of pro- ducing an additional 1,000 units? (3) What is the total prime costs and the total conversion costs for the production of 2,500 units? (4) If the current production level is 1,500 units, should the firm accept a special order of 1,500 additional units at a unit price of $7

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