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AAA Co. produces electric blankets. The cost of producing and selling one blanket at the company's normal activity level of 75,000 units per month is

AAA Co. produces electric blankets. The cost of producing and selling one blanket at the company's normal activity level of 75,000 units per month is as follows:

Direct Materials

$30.00

Direct Labour

5.90

Variable Manufacturing Overhead

2.40

Fixed Manufacturing Overhead

17.20

Variable Selling & Administrative Expense

1.80

Fixed Selling & Administrative Expense

6.30

The normal selling price of the product is $75.00 per unit. A request has been received from an overseas customer for 2,300 units to be delivered this month at a special discounted price of $66.10. This order would have no effect on the company's normal sales and would not change any of the fixed costs. The variable selling and administrative expense would be $1.00 less per unit on this order than on normal sales. Required:

Each of the three scenarios below is independent of the others.

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