Glade Company produces a single product.
The costs of producing and selling a single unit of this product at the company’s current activity level of 8,000 units per month are:
|Variable manufacturing overhead||$0.50|
|Fixed manufacturing overhead||$4.25|
|Variable selling and administrative expenses||$1.50|
|Fixed selling and administrative expenses||$2.00|
The normal selling price is $15 per unit.
The company’s capacity is 10,000 units per month.
An order has