Variable Cost:

Direct material costs are $3,040$ ISK. per unit.

Direct labor costs are $2,690$ ISK. per unit but it takes $20$ working hours to produce one unit.

Indirect production costs a total of $63,463$ ISK and is allocated based on working hours.

How much is the Total Variable Cost to produce $391$ units in February?

Fixed cost is $3,552,250$

Special order:

The company received a special order in February for $1,250$ units and made the following

decision$-$making cost analysis:

The cost allocation is based on the cost of goods sold and the units sold in January, which was

$1,200,000$ ISK for $356$ units.

$-$Fixed Cost in mentioned above

The customer is willing to pay $9,300$ ISK. for each unit in this specific order.

Should the company take this order? If yes, what is the contribution margin per unit?

If the company accepts the order, how much is the profit or loss in February?

How much is the cost of goods sold and contribution margin?