Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 11 Aug 2017 My Price 8.00

Burns Industries

Burns Industries currently manufactures and sells 26,000 power saws per month, although it has the capacity to produce 41,000 units per month. At the 26,000-unit-per-month level of production, the per-unit cost is $77, consisting of $46 in variable costs and $31 in fixed costs. Burns sells its saws to retail stores for $86 each. Allen Distributors has offered to purchase 5,600 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs.

 


Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least...?

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Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 12:08 AM My Price 8.00

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