CompuTronics,a Manufacturer of Computer Peripherals,has Excess Capacity

CompuTronics,a manufacturer of computer peripherals,has excess capacity.The company's Utah plant has the following per-unit cost structure for item no.89:
The traceable fixed administrative cost was incurred at the Utah plant;in contrast,the allocated administrative cost represents a "fair share" of CompuTronics' corporate overhead.Utah has been presented with a special order of 5,000 units of item no.89 on which no selling cost will be incurred.The proper relevant cost in deciding whether to accept this special order would be:

A) $40.
B) $59.
C) $61.
D) $80.
E) some other amount.

Correct Answer:

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