The cost to produce one unit of the product is: Material $...

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Accounting

The cost to produce one unit of the product is:

Material $ 12.00

Labor $ 9.00

Variable cost $ 6.00

Fixed expenses $ 18.00

Total fixed expenses: $ 1,440,000

The companys normal capacity is 100,000 units. The figures given above are for 80,000 units.

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

Advice the manufacturer on whether the order should be accepted. (clear tables not photo)

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