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The following information relates to a product produced by Victoria Company: Direct materials $10 Direct labor 8 Variable overhead 9 Fixed overhead 7 Unit cost
The following information relates to a product produced by Victoria Company:
Direct materials | $10 |
Direct labor | 8 |
Variable overhead | 9 |
Fixed overhead | 7 |
Unit cost | $34 |
The product normally sells for $40 each. A customer has offered to buy 60,000 units for $30 each. The firm is not at full capacity. The total relevant per unit cost associated with the special order is
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