Young co. produces computers, which sell for 400 each. A new customer wants to order 1,000 units
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Question:
Young co. produces computers, which sell for £400 each. A new customer wants to order 1,000 units at £300 per unit. Production costs per unit are: Direct materials £90, Direct Labour £120, Variable overheads £50, fixed overheads £60.
In the short-term, what is the relevant cost of producing one more computer for this order?
£140
£210
No answer is correct
£320
£260
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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