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Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special
Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit.
a. Northern's profit per unit on the special order?
b. Northern's variable cost per unit?
c. Northern's average fixed cost per unit on regular sales?
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