Question
Can you please check my work. thank you Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs
Can you please check my work. thank you
Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $19 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,500 units with a special price of $20 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $1 per unit would be eliminated.
Should the special order be accepted?
a.There would be no difference in accepting or rejecting the special order.
b.yes
c.no
d.The answer cannot be determined from the data given.
My answer is C / no
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