3. How would your answer to requirement 2 differ if Graham‘s Glassworks made and sold 10,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making?
Graham‘s Glassworks can sell at a price below $8.25 per flange and still make a profit. The company earns operating income of $22,500 at a price of $8.25 per flange.