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The company makes and sells 400 units at $10 per unit. It costs on average $8 to produce each unit - $6 of fixed costs
The company makes and sells 400 units at $10 per unit. It costs on average $8 to produce each unit - $6 of fixed costs per unit (total fixed costsumber of units produced) plus $2 of variable costs per unit. A one-time customer approaches with a special order. They would purchase 100 units at $9 per unit. Should the company accept the order? (Assume they have capacity to produce $500 units) $7 per unit? $5 per unit? $1 per unit
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