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Wade Company produces a single product and has capacity to produce 240,000 units per month. Costs to produce its current monthly sales of 160,000 units
Wade Company produces a single product and has capacity to produce 240,000 units per month. Costs to produce its current monthly sales of 160,000 units follow: Per Unit Costs at 160,000 units Direct materials $ 25.00 $ 4,000,000 Direct labor 58.00 9,280,000 Variable overhead 20.00 3,200,000 Fixed overhead 35.00 5,600,000 Fixed general and administrative 26.00 4,160,000 Totals $ 164.00 $ 26,240,000 The normal selling price of the product is $200 per unit. A new customer offers to purchase 40,000 units
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