1) How do you use the attached information to find the relevant/avoidable costs for AQP for producing electric skateboards in house rather than accepting the SQP's special offer? 

2) How do you figure out which option would be more lucrative for AQP?

Armidale Quality Products (AQP) produces electrical skateboards. The company's 2021 books show the following 'per unit' cost structure for a total production of 10,000 units: Direct materials $0.60 Direct manufacturing labour 3.00 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 1.60 Total $6.40 A newly established company in the area, Sydney Quality Products (SQP) has offered to sell 10,000 units of electrical skateboards to AQP (almost similar to what AQP normally produces) at a specially discounted price of $6.00 per unit. If AQP accepts the special offer, it could use its saved production facilities to produce electric chain saws and be able to make a profit of $9,000 on selling this new product. In addition, AQP could also save $1.00 per unit of its existing fixed manufacturing overhead costs.