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Use the following information to complete Problems 11 and 12 (both of which are on the next page; feel free to use this page to
Use the following information to complete Problems 11 and 12 (both of which are on the next page; feel free to use this page to show your work) A company has received a request for a special order for 2,500 units of its product and the potential customer has offered to pay $130 per unit. Currently, the company produces 40,000 units monthly and the normal selling price for each unit is $190. The cost per unit for the 40,000 units produced monthly is as follows: Variable product costs Fixed product costs Variable selling and administrative expenses $80 $20 $12 Problem 11 (8 points): Assuming the company has a production capacity of 45,000 units monthly, what would be the effect on profitability of accepting the special order? Problem 12 (8 points): Assuming the company has a production capacity of 40.000 units monthly, what would be the effect on profitability of accepting the special order
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