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Yont Incorporated produces 600 units of a product each month with a unit variable cost of $24. Total fixed costs for the month are 55,550.
Yont Incorporated produces 600 units of a product each month with a unit variable cost of $24. Total fixed costs for the month are 55,550. A special sales order is received for 200 units of the product at a price of $28 per unit. In deciding to accept or reject the special sales order, it is appropriate to consider the current fixed cost per unit of 9.25 new fixed cost per unit of $6.9375, O difference between the offered price and the new variable cost per unit of $16.50. O difference between the offered price and the variable cost per unit of $24.00
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