Econ Company produces widgets. Each widget sells for $120, and the company sells approximately 50,000 widgets each year. Unit cost data for the year follows: Econ has received an offer from a foreign company to purchase 10,000 widgets at $95 each. Domestic sales would be unaffected by this transaction. If the offer is accepted, variable distribution costs will increase $4 per widget for
insurance, shipping, and import duties. The relevant unit cost to a pricing decision on this offer is:
a. $93
b. $59
c. $80
d. $67
c
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