The Following Unit Cost Information Pertained to the Trumpet Division

question 135

Essay

The following unit cost information pertained to the trumpet division of WGN Music Co. and was based on monthly demand and sales of 100 units: Assume that the Trumpet Division was evaluating whether or not it would accept a special order for ten trumpets at $500 per unit.
Required:
1. Calculate total relevant cost per unit.
2. Should WGN accept the special order; why or why not?

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