Accounting

Company Ltd. is evaluating a special order received in order to sell 60.000 units of its product. The selling price is EUR 35 per unit which is EUR 15 lower than the product selling price. The accounting dpt of the company prepared the following analysis in order to show that there will be small decrease in production cost as a result of increased sales.

Variable cost per unit for Additional Sales excl.(100.000 units): 30

Variable cost per unit for Additional Sales incl. (160.000 units): 8012

Fixed cost per unit for Additional Sales excl.(100.000 units): 30

Fixed cost per unit for Additional Sales incl. (160.000 units): 10

You should assume that the company can serve the new customer without sacrificing any of the existing. - Should the company accept the new offer of 60.000 units with the reduced price? - If company accepts the offer, how this will affect the operating costs of the company?