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Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $ 100 per unit. Wholesaler Y offers to
Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $ 100 per unit. Wholesaler Y offers to buy 2,000 additional units at $ 120 per unit. Wholesaler Z proposes to buy 1,500 additional units at $ 140 per unit. Which offer, if either, should Viking Corporation accept? Fixed costs are not affected by accepting either offer.
A. Accept both.
B. Reject both.
C. Accept Wholesaler Y
D. Accept Wholesaler Z
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