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Someone has asked XYZ Inc. for a special order for 2,500 units of item ABC for $35 a unit. There would be slight modifications for
Someone has asked XYZ Inc. for a special order for 2,500 units of item ABC for $35 a unit. There would be slight modifications for the special order, and item ABC's normal unit product cost is $19.80: DM DL $ 4.90 6.00 2.00 6.90 Var. manuf. O/H Fixed manuf. 0/H Per Unit product cost $19.80 This order would not impact the XYZ Inc's. total fixed manuf. O/H. The customer wants changes made to item ABC that would increase the variable costs by $1.60 per unit and that would necessitate investing $19,000.00 in tools that would have no salvage value. This order wouldn't impact the company's other sales. The company has sufficient capacity for making the order. The amount of the dollar $ advantage (disadvantage) for XYZ Inc. if they accept the special order should be
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