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Current I sell my product for $20. My DM costs are $3/unit, DL costs are $6/unit and the variable MOH is $4/unit. My fixed MOH
Current I sell my product for $20. My DM costs are $3/unit, DL costs are $6/unit and the variable MOH is $4/unit. My fixed MOH is $400. A customer has come and asked if I am willing to sell them an additional 200 units for $3,500 dollars. Should I do this? To set up the sale I will need to incur pay my staff an additional $1/unit.
a.
Yes: 800
b.
None of the above
c.
Yes: 300
d.
Yes: 700
e.
Yes: 1,400
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