Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:
The Don Company has offered to sell Carmen 5,000 units of Y2 for $22 per unit. If Carmen accepts the offer, $70,000 of fixed manufacturing overhead will be eliminated.
Applying differential analysis to the situation, what should Carmen do?

Question

Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:
  The Don Company has offered to sell Carmen 5,000 units of Y2 for $22 per unit. If Carmen accepts the offer, $70,000 of fixed manufacturing overhead will be eliminated.
Applying differential analysis to the situation, what should Carmen do?

Quizplus · Accepted Answer

The Answer of Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:
  The Don Company has offered to sell Carmen 5,000 units of Y2 for $22 per unit. If Carmen accepts the offer, $70,000 of fixed manufacturing overhead will be eliminated.
Applying differential analysis to the situation, what should Carmen do?

Carmen Manufactures a Unit Called A2