Rs. Per Unit
Manufacturing Overheads (20% fixed)
Administration Overheads (100% fixed)
Selling and Distribution Overheads (50% variable)
The company receives an order from the foreign market for 2000 units at a price of Rs. 80 per unit. The additional distribution cost for export is estimated at Rs. 2 per unit.
Is the offer of the foreign market accepted by utlizing the spare capacity?