Special order, opportunity cost. Chade Corp. is considering a special order brought to it by a new client. If Chade determines the variable cost to be $9 per unit, and the contribution margin of the next best alternative of the facility to be $5 per unit, then if Chade has: Full capacity, the company will be profitable at $4 per unit. Excess capacity, the company will be profitable at $6 per unit. Full capacity, the selling price must be greater than $5 per unit. Excess capacity, the selling price must be greater than $9 per unit.

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A: Given Unit sales = 90000 Unit price = $1220 Unit variable = $380 Fixed cost (million) = $3.75

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A: SOLUTION-   PROFIT = SALES - VARIABLE COST - FIXED COST .

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A: The correct answer is  b. It will decrease

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A: Solution

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