Figure 9-6
the Following Information Relates to a Product Produced

question 19

Multiple Choice

Figure 9-6
The following information relates to a product produced by Creamer Company: $\begin{array}{lr}\text { Direct materials } & £ 24 \\\text { Direct labour } & 15 \\\text { Variable overhead } & 30 \\\text { Fixed overhead } & {18} \\\text { Unit cost } & £87\end{array}$ Fixed selling costs are £500,000 per year, and variable selling costs are £12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for £120 each. A customer has offered to buy 60,000 units for £90 each.
-Refer to Figure 9-6. The incremental cost per unit associated with the special order is

• A)£84.
• B)£81.
• C)£69.
• D)£64.

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Definitions:

Unconditioned Stimulus

is a stimulus that naturally and automatically triggers a response without the need for prior learning.

Lover's Lane

Lover's Lane traditionally refers to a secluded area where people engage in romantic activities.

Chanel #5

A classic and highly influential fragrance created by the French fashion house Chanel in 1921.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any need for prior learning.