hinds ltd as part of its product range produces the lsquo silvto rsquo this product 611296
Hinds Ltd, as part of its product range, produces the ‘SILVTO’. This product normally sells for £160. The following costs are associated with its production:
|
Cost per unit |
|
|
£ |
|
|
Direct materials |
34 |
|
Direct labour |
75 |
|
Variable overheads |
12 |
|
Fixed costs |
25 |
The directors have recently received a request from a Latvian company offering to purchase 2,000 SILVTOs at a price of £140 each. Advise them as to whether they should accept or reject the Latvian offer.