connect ACCOUNTING Chapter 04 Fundamentals of Cost Analysis for Decision Making Instructions help Question 3 fof 7) Save&Exit Submt 238 points You did not recetve full credit for this question in a previous attempt Fairmount Travel Gear produces backpacks and sells them to vendors who sell them under their own label The cost of one of ts backpacks follows Material Labor Variable overhead Fixed overhead ($3.433,600 per year 464.000 units per year) $19 40 13.40 6 40 Total $46 60 Riverside Discount Mart, a chain of low-price stores, has asked Fairmount to supply it with 33,000 backpacks for a special promotion Riverside is planning Riverside has offered to pay Fairmount a unit price of $52 per pack The regular selling price is $74 The special order would require some modification to the basic model These would add $5 40 per unit in material cost, $2 90 per unit in labor cost and $1.90 in variable overhead cost. Athough Fairmount has the capacity to produce the 33,000 units without afecting its regular production of 484,000 unts, a one-tme rental of special testing equipment to meet Riverside's requirements would be needed The equipment rental would be $98,800 and would allow Fairmount to test up to 64,000 unts 1t/25/ca Type here to search