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Each month Perry Company produces 9,000 units of a product that has variable costs of $12 per unit. Total fixed costs for the month are
Each month Perry Company produces 9,000 units of a product that has variable costs of $12 per unit. Total fixed costs for the month are $36,000. A special order is received which is for 1,000 units at a price of $13 per unit. Relevant to the decision of whether to accept or reject this special order is the: a. Old fixed cost per unit of $4.00
b. New fixed cost per unit of $3.60 c. Difference between the offered price and the variable cost per unit (i.e., $1.00) d. Difference between the two fixed costs per unit (i.e., $0.40)
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