Question 1: A) Enron Ltd produces a product with the following information for next month: Variable costs per unit Total Fixed costs Budgeted production $55 $65,000 2,500 units (i) (ii) Calculate the full cost per unit. With the recent recession, the firm is experiencing a slowdown in demand and the only offer they have for their product is a company who will buy all 2,500 units at $72 per unit. Managers are confident that demand will pick up in the next few months. Should they accept the offer?