Micro Enterprises has the capacity to produce 10,000 widgets a month and currently makes and sells 9,000
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Micro Enterprises has the capacity to produce 10,000 widgets a month and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each.
What is the "cost" per unit in the context of evaluating the offer from Coyote Corp.?$2
$3
$4
$5
$6
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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