(Solved):Lancaster Lighting Corp. produces a model of outdoor floodlight that normally sells for $15 per…

 

Question

Lancaster Lighting Corp. produces a model of outdoor floodlight that normally sells for $15 per light. Sales per year are 500,000 units, and the production line is operating at 70% capacity. Lancaster has been presented with a special one-time export order for 40,000 lights at $11 per light. The $11 price is below the current total cost of production.

Listed below are the costs based on the production of 500,000 units.

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