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Alpha Ltd has a current production capacity level of 200,000 units per month. production, variable costs are 0.90 per unit and fixed costs are 0.50
Alpha Ltd has a current production capacity level of 200,000 units per month.
production, variable costs are 0.90 per unit and fixed costs are 0.50 per unit. Current monthly sales are 164,500 units. Another company has contacted Alpha Ltd about purchasing 20,000 units at 2.00 each. Current sales would not be affected by the special order. If Alpha Ltd. decides to accept the special order, Alpha Ltd's costs will increase by:
A. 28,000
B. 10,000
C. 18,000
D. 40,000
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