Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

3.

To determine

State the additional factors that company should be considered in special order.

4.

To determine

Calculate the opportunity cost for accepting special order.