Question: I am mostly confused about which cost per unit to use to calculate! Marie Curie Corp. has a current production rate of 8 , 0
I am mostly confused about which cost per unit to use to calculate! Marie Curie Corp. has a current production rate of units, an average cost of $ per unit, and a current market price of $ They estimate that they can increase production to units without incurring an increase in fixed costs. Their estimated average cost at a production amount of units is $ per unit. Their marginal cost is constant for this item. An order for units at $ per unit came from a customer in a region not part of ordinarily sales channels. No variable selling or administrative expenses would be associated with the order. If the company accepted the order, what would be the impact on profits? Should the company accept the bid? Why? B Under what conditions would the company turn down this order, even if it were profitable?
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