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Sampson Industries has an annual plant capacity of 66 comma 000 units; current production is 56 comma 000 units per year. At the current production
Sampson Industries has an annual plant capacity of 66 comma 000 units; current production is 56 comma 000 units per year. At the current production volume, the variable cost per unit is $ 26.00 and the fixed cost per unit is $ 3.80. The normal selling price of Sampson's product is $ 42.00 per unit. Sampson has been asked by Rudolph Company to fill a special order for 7 comma 000 units of the product at a special sales price of $ 20.00 per unit. Rudolph is located in a foreign country where Sampson does not currently operate. Rudolph will market the units in its country under its own brand name, so the special order is not expected to have any effect on Sampson's regular sales
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