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Burns Industries currently manufactures and sells 19000 power saws per month although it has the capacity to produce 34000 units per month. At the 19000
Burns Industries currently manufactures and sells 19000 power saws per month although it has the capacity to produce 34000 units per month. At the 19000 units per month level of production the per units cost is 63 consisting of 39 in variable costs and 24 in fixed costs. Burns sells its saw to recall stores fo 79 each. Allen Distributors has been offered to purchase 4900 saws per month at a reduced price
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