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Hilal Furniture makes 5,200 units of a sofa at a cost of 280 BD each....

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Accounting

Hilal Furniture makes 5,200 units of a sofa at a cost of 280 BD each. The variable cost per unit is 190 BD and the fixed cost per unit is 90 BD. Jebel Furniture offers to supply 5,200 units of this sofa for 260 BD. If Hilal Furniture buys from Jebel Furniture will be able to save 10 BD per unit in fixed costs but continue to incur the remaining 80 BD per unit. Should Hilal Furniture accept Jebel Furnitures offer? Explain.

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