Question
Trojan Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of8,078
Trojan Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of8,078 units per year is:
Direct materials$2.54Direct labor$3.04Variable manufacturing overhead$0.52Fixed manufacturing overhead$4.3Variable selling and administrative expense$1.47Fixed selling and administrative expense$1.99
The normal selling price is $15.05 per unit. The company's capacity is9,938units per month. An order has been received from an overseas source for1,998units at the special price of $11.99per unit. This order would not affect regular sales.
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