Determining the total fixed cost
Benoit's Baguette's has total costs of $7,000 when 3,500 units are produced and $10,500 when 7,000 units are produced. What is the total fixed cost?
A. $7,000
B. $3,500
C. $10,500
D. $0
Expected delivery within 24 Hours
This would result in direct labor being paid overtime at 150% of the normal pay rate. Additionally, $50,000 in additional fixed costs would be association with the order. What will be the impact on profits of accepting the order?
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