Each Month, Burrel Incorporated Produces 500 Units of a Product

Multiple Choice

Each month, Burrel Incorporated produces 500 units of a product that has unit variable costs of $22. Total fixed costs for the month are $4800. A special sales order is received for 200 units of the product at a price of $28 per unit. In deciding to accept or reject the special sales order, it is appropriate to consider the

A) new fixed cost per unit of $6.86.
B) current fixed cost per unit of $9.60.
C) difference between the offered price and the variable cost per unit.
D) difference between the two fixed costs per unit, or $2.74.