The Following Information Relates to a Product Produced by Creamer

question 56

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.