Each month,Burrel Incorporated produces 500 units of a product that has unit variable costs of $17.00.Total fixed costs for the month are $4,375.A special sales order is received for 200 units of the product at a price of $20 per unit.In deciding to accept or reject the special sales order,it is appropriate to consider the
A) new fixed cost per unit of $6.25.
B) current fixed cost per unit of $8.75.
C) difference between the offered price and the variable cost per unit.
D) difference between the two fixed costs per unit,or $2.50.
Correct Answer:
Verified
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