Mystical Corporation manufactures a single product with the following unit costs for 5,000 units:
Recently, a company approached Mystical Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Mystical's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.
Required:

Question

Mystical Corporation manufactures a single product with the following unit costs for 5,000 units:
  Recently, a company approached Mystical Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Mystical's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.
Required:

Quizplus · Accepted Answer

The Answer of Mystical Corporation manufactures a single product with the following unit costs for 5,000 units:
  Recently, a company approached Mystical Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Mystical's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.
Required:

Mystical Corporation Manufactures a Single Product with the Following Unit