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A company makes a single product that is normally sells for $ 6 5 / unit . It has the capacity to produce 1 0
A company makes a single product that is normally sells for $unit It has the capacity to produce units per year, but currently produces only Perunit costs associated with the product at an annual production level of are below:
Variable production cost per unit $
Variable selling cost per unit $
Fixed production cost per unit $
Fixed selling cost per unit $
A foreign distributor wants to buy units and has offered to pay $ each. Additional information:
If the company accepts this order, it would incur $ in additional legal costs to comply with export regulations.
No selling costs would be incurred for this order.
What would be the total financial impact of accepting this offer?
Make sure to calculate the total impact, not the perunit amount. Use a negative number to indicate a decrease in cash flows.
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