A special order of 100000 units was received at a discount


Question - Can manufacture 490,000 units per year at a variable cost of $15 per unit and at fixed costs of $500,000. Company budgeted that it can sell 400,000 units at $25 per unit. A special order of 100,000 units was received, at a discount of 35% from the regular price. What is the relevant cost of this special order? Please include steps.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: A special order of 100000 units was received at a discount
Reference No:- TGS02661277

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)