A company has excess capacity. Smith Company is making a special offer to buy one of their products at cost of 20 per unit, the product normally sells for 42.00 per unit.

The costs of the product are as follows:

Special Order: A company has excess capacity. Smith Company is making a special offer to buy one of their products at cost of 20 per unit, the product normally sells for 42.00 per unit. The costs of the product are as follows: Direct Materials - (Variable Cost) $ 4.00 Direct Labor - (Variable Cost) Variable Overhead - (Variable Cost) Fixed cost per unit Total Costs $ 10.00 $ 8.00 $ 8.00 30.00