A Company Normally Sells a Product for $20 Per Unit

question 86

True/False

A company normally sells a product for $20 per unit.Variable per unit costs for this product are: $2 direct materials,$4 direct labor,and $1.50 variable overhead.The company is currently operating at 70% of capacity producing 14,000 units per year.Total fixed costs are $42,000 per year.The company should not accept a special order for 2,000 units which would be sold for $10 per unit because there would be an incremental loss on the order.

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Definitions:

Networks

A collection of interconnected people or organizations that exchange information and resources for professional or personal gain.

Best Referral System

refers to an efficiently designed process or program that encourages satisfied customers or clients to refer new customers or clients to a business.

Minimal Financing

Situations where businesses or projects operate with the lowest possible amount of financial investment or support.

Howard H. Stevenson

A professor and influential figure in the field of entrepreneurship, known for his work on the definition and concept of entrepreneurship.