Glade Company produces a single product. The costs of producing and selling a single unit of this product at the company's current activity level of 8,300 units per month are:
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|
|
|
|
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Direct materials
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$
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2.20
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|
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Direct labor
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$
|
4.00
|
|
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Variable manufacturing overhead
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$
|
.70
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|
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Fixed manufacturing overhead
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$
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3.95
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|
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Variable selling and administrative expenses
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$
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1.00
|
|
|
Fixed selling and administrative expenses
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$
|
3.00
|
|
The normal selling price is $22 per unit. The company's capacity is 10,600 units per month. An order has been received from a potential customer overseas for 2,300 units at a price of $19.00 per unit. This order would not affect regular sales.
Please answer the following red sections:
