What is current total profit-loss and per unit profit-loss

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Problem

The Einstein Co has the following information:

Capacity in units 6,000
Sales in units 4,500
Sales Price $ 60.00
VC per unit $ 42.00
FC per unit $ 20.00

Colt Co. wants to buy a special order of 1200 units for $55.00 each.

1. What is the current total profit/loss and per unit profit/loss?
2. What is the special order total profit/loss and per unit profit/loss?
3. Should Einstein accept or reject the special order?
4. What is the minimum price that Einstein should accept?
5. If Einstein does not have capacity, does that change your answer?

Reference no: EM131808626

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