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Bee Co. made and sold 100,000 of its only product in year 1 for $15 each. Bee's costs per unit for year 1 follow: Direct

Bee Co. made and sold 100,000 of its only product in year 1 for

$15

each. Bee's costs per unit for year 1 follow:\ Direct\ materials\

$5.00

\ Direct labor

,2.00

\ Variable\ manufacturing 1.00\ overhead\ Fixed\ manufacturing 1.50\ overhead\ Variable\ selling &\ administrative\ 0.80\ costs\ Fixed selling &\ administrative

,0.50

\ costs\ Total

$$10.80

\ In year 2, Bee expects to produce and sell 80,000 units. The selling price and variable costs per unit will remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units.

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Bee Co. made and sold 100,000 of its only product in year 1 for $15 each. Bee's costs per unit for year 1 remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units. Bee Co. made and sold 100,000 of its only product in year 1 for $15 each. Bee's costs per unit for year 1 remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units

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