Special Order
Northern Company regularly sells its only product for $36 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit. What, apparently, is
Round answers to two decimal places, when applicable.
a. Northern's profit per unit on the special order?
b. Northern's variable cost per unit?
c. Northern's average fixed cost per unit on regular sales?