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Young co. produces computers, which sell for 400 each. A new customer wants to order...

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Accounting

Young co. produces computers, which sell for 400 each. A new customer wants to order 1,000 units at 300 per unit. Production costs per unit are: Direct materials 90, Direct Labour 120, Variable overheads 50, fixed overheads 60.

In the short-term, what is the relevant cost of producing one more computer for this order?

  1. 140

  2. 210

  3. No answer is correct

  4. 320

  5. 260

Answer & Explanation Solved by verified expert
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