willowdale company produces and sells its only product xt-300. the company has been approached by...

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Accounting

Willowdale Company produces and sells its only product XT-300. The company has been approached by a new customer from the USA with an offer to purchase 20,000 units of XT-300 for $11.00 each. If this order is accepted, existing sales will not be affected. Willowdale Co. has a capacity to produce 110,000 units per year but only plans to produce and sell 90,000 in the coming year due to expected lower demand in the local market. Exporting the product to the USA will require a further packaging and shipping cost of $0.45 per unit. The normal sales price is $16.00 per unit to regular customers. Unit cost information for the normal level of activity is as follows

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