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The unit costs of Paul Product on its only one product Kite, at its normal sales level of 30,000 units per year are detailed below:
The unit costs of Paul Product on its only one product "Kite", at its normal sales level of 30,000 units per year are detailed below: $5.25 2.35 Variable production costs..... Fixed production costs...... Variable selling costs. Fixed selling and administrative costs... Total cost per unit.. 0.75 3.45 tao $11.80 There is ample idle capacity to accept a special order without any increase in total fixed costs of any kind. A special order of 1,000 units was received from local customer at a selling price of $9.95 each. The special order would involve lower variable selling costs of $0.15 per unit instead of $0.75 per unit. What effect would be in accepting the special order on the company's operating income
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