(Solved):Maple company produces a single product. The cost of producing and selling a single unit of this…

 

Question

Maple company produces a single product. The cost of producing and selling a single unit of this product at the company?s normal activity level of 60,000 units per month is as follows:

Direct materials $27
Direct labor $5
Variable manufacturing overhead $2
Fixed manufacturing overhead $12
Variable selling & administrative expense $3
Fixed selling & administrative expense $10
Normal selling price of product $65

An order has been received from an overseas customer for 2000 units to be delivered

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