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Kansas Company Produces and Sells 20,000 Units at $22 Per

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Kansas Company produces and sells 20,000 units at $22 per unit.Kansas Company's product cost is calculated as follows: Kansas Company produces and sells 20,000 units at $22 per unit.Kansas Company's product cost is calculated as follows:   A total of 500 setups at a cost of $120 per setup are required to produce the 20,000 units.Kansas Company has received a special order to sell 5,000 units at $12 per unit.Kansas Company has excess capacity available,but these 5,000 units would require 60 setups.If Kansas Company accepts the special order,what is the increase in costs to them? A) $7,200 B) $40,000 C) $57,200 D) $65,000 A total of 500 setups at a cost of $120 per setup are required to produce the 20,000 units.Kansas Company has received a special order to sell 5,000 units at $12 per unit.Kansas Company has excess capacity available,but these 5,000 units would require 60 setups.If Kansas Company accepts the special order,what is the increase in costs to them?

Understand the elements and effectiveness of communication.
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