Thomson Company has been approached by a new customer with an offer to purchase
34,000 units of Thomson’s product at a price of $24 each. The new customer
is geographically separated from Thomson’s other customers, and there would be no
effect on existing sales. Thomson normally produces 400,000 units but plans to produce
and sell only 360,000 in the coming year. The normal sales price is $30 per
unit. Unit cost information is as follows: