The Following Information Relates to a Product Produced by Creamer

question 13

Multiple Choice

The following information relates to a product produced by Creamer Company: $\begin{array}{lr}\text { Direct materials } & \$ 24 \\\text { Direct labour } & 15 \\\text { Variable overhead } & 30 \\\text { Fined overhead } & 18 \\\text { Unit cost } & \$ 87\end{array}$ 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. What is the incremental cost per unit associated with the special order?

• A) $64
• B) $69
• C) $81
• D) $84

---

Definitions:

Performance Appraisals

A systematic evaluation of an employee's job performance and productivity in relation to pre-determined criteria and objectives.

Strategic Objectives

Specific, measurable goals aligned with an organization's strategic plan, aimed at achieving its long-term vision.

Performance Appraisal

The evaluation of an employee's job performance and feedback delivery about their accomplishments and areas for improvement.

Organizational Response

The way in which an organization reacts to internal or external stimuli, including challenges or opportunities.