Case
Regular sales of a company sells 400,000 units of irons per month. 

Variable cost of $40,000 per unit. 

Fixed cost $10,000 per unit . Normal selling price $500,000

The company received an offer from an exporter to produce 50,000 units of irons at a price of $400,000

If this offer is accepted, it will not interfere with the company\'s normal production and there will be no overtime

The question:
Determine the decision should the additional order be accepted?

Note: The solution shows the correct and structured calculations and is supported by a comprehensive discussion

Answer rating: 100% (QA)

Fixed costs 10000 per unit Variable cost 40000 per unit Total cost per unit 100... View the full answer