Question
The short-run differential costs of a product are $25. Fixed costs are $5 per unit based on 10,000 units produced during this period. The company
The short-run differential costs of a product are $25. Fixed costs are $5 per unit based on 10,000 units produced during this period. The company has adequate capacity to accept a special order of 1,000 units. What is the minimum price that could be charged using the differential approach to pricing?
a. $5.00
b. $20.00
c. $25.00
d. $30.00
whitch one is the correct anser and how we get this answer?
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
25th Edition
1260247988, 978-1260247985
