The Following Information Relates to a Product Produced by Creamer

question 11

Multiple Choice

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

• A) £84.
• B) £81.
• C) £69.
• D) £64.

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Definitions:

French Émigrés

Refers to French individuals, especially nobility, who fled France during the French Revolution due to threats to their lives and status.

Philadelphia

A historic city in the United States, known for its significant role in American history, particularly during the Revolutionary War.

1790s

The decade from 1790 to 1799, notable for significant political and social changes globally, including the French Revolution.

War on Britain

is a broad term that could refer to various conflicts involving Britain, but without a specific context, it is too vague to accurately define.