is a profitable business that produces a single product. The following information is available concerning the product.

		Per unit
Selling price		78
Variable costs		(31)
Fixed costs		(30)
Profit		17

An overseas business has recently offered to buy

8 comma 4008,400

units of the product for

3434

per unit over the next year. Although there is sufficient production capacity to meet the order, a final decision concerning the order has yet to be made.

If the order is not accepted, the spare production capacity will be rented to another business for

5 comma 5005,500

per year.