The following information relates to a product produced by Creamer Company:
Direct mater...
The following information relates to a product produced by Creamer Company:
Direct materials
$24
Direct labor
15
Variable overhead
30
Fixed overhead
18
Unit cost
$87
Fixed
selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each.
The incremental cost per unit associated with the special order is
Select one:
a. $84
b. $81
c. $69
d. $64
Answers: 3
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