Each Quarter Bluffs Company Produces 30,000 Units of a Product

Multiple Choice

Each quarter Bluffs Company produces 30,000 units of a product that has variable costs of $70 per unit.Total fixed costs for the quarter are $990,000.A special order is received for 1,000 units at a price of $77 per unit.In deciding to accept or reject this special order, it is appropriate to consider the _____.

A) old fixed cost per unit of $33.00
B) difference between the offered price and the variable cost per unit
C) new fixed cost per unit of $31.94
D) difference between the two fixed costs per unit, which is $1.06