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om The following are Golden Company's unit costs of making and selling an item at a volume of 8,000 units per month (representing the company's

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om The following are Golden Company's unit costs of making and selling an item at a volume of 8,000 units per month (representing the company's capacity): Manufacturing: Direct materials.. P4.00 Direct labor.... 5.00 Variable overhead... 2.00 Fixed overhead... 8.00 Selling and administrative: Variable. 2.50 Fixed. 5.00 Present sales amount is equal to 7.000 units per month. An order has been received from a customer in a foreign market for 900 units at a price of P20 per unit. The order would not affect regular sales. Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range of up to 8.000 units per month. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. The company has 100 defective units left over from last year which will have to be sold as scap al reduced prices. The sale of these units would have no effect on the company's other sales The sure that is relevants and for sell

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