The following information relates to a product produced by Creamer Company: 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.
The incremental cost per unit associated with the special order is
Definitions:
Price of Oil
The amount of money required to purchase a barrel of oil, influenced by global supply and demand, geopolitical events, and other factors.
Natural Gas
Natural gas is a fossil fuel consisting mainly of methane and other hydrocarbons, used as a source of energy for heating, cooking, and electricity generation.
Demand Curve
A visual chart that depicts the correlation between a product's price and the amount consumers are willing to buy.
Digital Cameras
Electronic devices that capture and store photographs in digital format, allowing for easy editing and sharing.
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