Question 15 Answer saved Marked out of 1.00 Flag question Eley Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows:Direct materials $42.60Direct labour8.10Variable manufacturing overhead1.10Fixed manufacturing overhead 17.30Variable selling & administrative expense 1.80Fixed selling & administrative expense8.00 The normal selling price of the product is $86.10 per unit. An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.20 less per unit on this order than on normal sales. Direct labour is a variable cost in this company. Suppose there is not enough idle capacity to produce all the units for the overseas customer and accepting the special order would require cutting back on production of 700 units for regular customers. The minimum acceptable price per unit for the special order is closest to: Oa. $86.10 O b. $69.10 OC. $78.90 O d. $63.78 Clear my choice

15 Bey Cocnpary produces a single product. The cost of proctucing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as followsiDitect materials $42.600 irect labour8. 10Variable manutacturing overhead1. 10 Fixed manufacturing overhead17 30Varibleselling& administrative expenset, 80Fixed selling & administrative expense 8.00 The normal selling price of the product is $86.10 per unit. An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the tolat amount of the companys foxed costs. The variable selling and administrative expense would be 51.20 bes5 per unit on this ordet than on nocmal sales. Direct labour is a variable cost in this company Suppose there is not enough idile capacity to produce all the units for the overseas customer and accepting the special order would require cutting back on production of 700 units for regular custormers. The minimum acceptable price per unit for the special order is closest to: a. 506,10 b. 569.10 c 57890 d. 963.78 Gear itiy cholice