Question: (Chapters 21,23,24,26) State Colleg... Saved Help Save & Exit Submi 35:11 Burns Industries currently manufactures and sells 29,000 power saws per month, although it has
(Chapters 21,23,24,26) State Colleg... Saved Help Save & Exit Submi 35:11 Burns Industries currently manufactures and sells 29,000 power saws per month, although it has the capacity to produce 44,000 units per month. At the 29,000- -unit-per-month level of production, the per-unit cost is $83, consisting of $49 in variable costs and $34 in fixed costs. Burns sells its saws to retail stores for $89 each. Allen Distributors has offered to purchase 5,900 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. Burns decides to accept the special order for 5,900 units from Allen at a unit sales price that will add $118,000 per month to its operating income. The unit price Burns is charging Allen is: ok Multiple Choice $69. $49. $83
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