The cost to produce one unit of the product is:

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1.The cost to produce one unit of the product is:
Material
$ 13.00
Labor
$8.00
Variable cost
$7.00
Fixed expenses
$ 18.00
Total fixed expenses: $ 500,000
The company’s normal capacity is 100,000 units. The figures given above are for 80,000 units.
The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice
the manufacturer on whether the order should be accepted or not.
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