Premium Co. produces park benches. A customer has offered Premium Co. $800 per unit for 100 units.

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Premium Co. produces park benches. A customer has offered Premium Co. $800 per unit for 100 units. To fill the order, Chris would incur unit-level costs of $600 per unit and batch-level costs of $15,000. Premium Co. also incurred $20,000 of product-level costs to design the bench and $200,000 of facility-level costs. Calculate the amount of differential revenue.

Multiple choice question.

$20,000

$5,000

$80,000

Posted Date: Jun 25, 2024 03:00 PM

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Premium Co. produces park benches. A customer has offered Premium Co. $800 per unit for 100 units.

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