Burns Industries currently manufactures and sells 12,000 power saws per month, although it has the capacity to produce 2

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Burns Industries Currently Manufactures And Sells 12 000 Power Saws Per Month Although It Has The Capacity To Produce 2 1 (22.44 KiB) Viewed 18 times

Burns Industries currently manufactures and sells 12,000 power saws per month, although it has the capacity to produce 27,000 units per month. At the 12,000-unit-per-month level of production, the per-unit cost is $48, consisting of $31 in variable costs and $17 in fixed costs. Burns sells its saws to retail stores for $72 each. Allen Distributors has offered to purchase 4,200 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs Burns decides to accept the special order for 4,200 units from Allen at a unit sales price that will add $88,200 per month to its operating income. The unit price Burns is charging Allen is: a $31. b. $72. $48. d. $52