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Radakovich Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool
Total Cost
Total Activity
Assembly
$436,240
28,000 machine-hours
Processing orders
$60,896
1,600 orders
Inspection
$82,767
1,410 inspection-hours
The company makes 230 units of product F60N a year, requiring a total of 480 machine-hours, 50 orders, and 30 inspection-hours per year. The product"s direct materials cost is $12.70 per unit and its direct labor cost is $45.93 per unit. The product sells for $126.60 per unit.
According to the activity-based costing system, the product margin for product F60N is:
A) $6,251.70 per unit
B) $4,490.70 per unit
C) $6,393.70 per unit
D) $15,633.10 per unit
How would accepting the order affect the bottom line of the company?
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