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Finn flying company produces and sells kits for $54. The company had the capability to produce 10,900 kits each period. At capacity the costs assigned
Finn flying company produces and sells kits for $54. The company had the capability to produce 10,900 kits each period. At capacity the costs assigned to each unit are as follows.
Unit level $34
Product level $19
Facility costs $14
The cosmonauts has received a special order for 245 kits. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent betweeen accepting or rejecting the special order?
Multiple choice
$75
$34
$80
$85
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