Question: The cost to produce one unit of the product is: Material SAR 13.00 Labor 8.00 Variable cost 7.00 Fixed expenses 18.00 Total fixed expenses: $

The cost to produce one unit of the product is:

Material SAR 13.00

Labor 8.00

Variable cost 7.00

Fixed expenses 18.00

Total fixed expenses: $ 500,000

The company has received a special order for 20,000 units for a price of SAR 36 per unit from a foreign customer.

Required: 

Advice the manufacturer on whether the order should be accepted or not. (Show all working)

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