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Kanada Inc. currently produces a product with the following cost characteristics:

Selling price	$85
Variable costs production	29
Variable costs selling and administrative	15
Total fixed costs	$939301

Plant capacity	41662
Current product/sales volume	38464

Kanada Inc. can purchase additional capacity at a cost of $38101 in increments of 3043 units. A customer approaches AB Inc. for a special one-time order to purchase 9284 units. 71% of current variable selling and administrative costs would be incurred with this order.

Assuming Kanada Inc. would purchase additional capacity, what is the minimum acceptable per unit price for this order?

Select one:

a. $47.86

b. $52.21

c. $70.40

d. $39.65

Data for one of the Hawkins Company products is as follows:
	Maximum capacity	107454
	Current sales level	66401
	Selling price	$40
	Variable production costs	25
	Variable selling costs	4
	Fixed costs	404175
The Hawkins Company has been offered a one-time special order for 21241 units at a price of $33. If the special order is accepted, 61% of the variable selling costs will be incurred for each unit of the special order. What is the incremental income to the Hawkins Company on the special order?

Select one:

a. $336032

b. $387860

c. $118100

d. $256137

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