Question
The following information relates to a product produced by Creamer Company: Direct materials - P24.00, Direct Labor - P15.00, Variable Overhead - P30.00, Fixed Overhead
The following information relates to a product produced by Creamer Company: Direct materials - P24.00, Direct Labor - P15.00, Variable Overhead - P30.00, Fixed Overhead - P18.00. Fixed selling costs are P500,000 per year, and variable selling costs are P12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for P120 each. A customer has offered to buy 60,000 units for P90 each. The incremental cost per unit associated with the special order is?
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