Question
Special Order Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted
Special Order Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit. What, apparently, is
Round answers to two decimal places, when applicable.
a. Northerns profit per unit on the special order?
$Answer
b. Northerns variable cost per unit?
$Answer
c. Northerns average fixed cost per unit on regular sales?
$Answer
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