Hello,

I am having trouble coming up with a solution for this problem.

Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $100 per unit. Wholesaler Y offers to buy 2,000 additional units at $120 per unit. Wholesaler Z proposes to buy 1,500 additional units at $140 per unit.

Which offer, if either, should Viking Corporation accept? Fixed costs are not affected by accepting either offer.