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COST PER UNIT WITHOUT THE COST PER UNIT WITH THE COSTS ADDITIONAL SALES (100,000 UNITS) ADDITIONAL SALES (130,000 UNITS) Variable $ 3.40 $ 3.40 Fixed

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COST PER UNIT WITHOUT THE COST PER UNIT WITH THE COSTS ADDITIONAL SALES (100,000 UNITS) ADDITIONAL SALES (130,000 UNITS) Variable $ 3.40 $ 3.40 Fixed 1.40 1.08 No additional fixed costs will be incurred for this order because the company has surplus capacity. Because the average cost per unit will be reduced from $4.80 to $4.48, Fritty's president believes that a reduction in the price to $5.00 is justified for this order

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