1. Acme currently manufactures and sells 13,000 power saws per month, although it has the capacity to produce 28,000 units per month. At the 13,000-unit-per-month level of production, the per-unit cost is $50, consisting of $32 in variable costs and $18 in fixed costs. Acme sells its saws to retail stores for $73 each. Ace Hardware has offered to purchase 4,300 saws per month at a reduced price. Acme can manufacture these additional units with no change in its present level of fixed manufacturing costs.

Using an incremental analysis approach, Acme should consider accepting this special order only if the price per unit offered by Ace Hardware is at least:

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Ithink its 3! hope it : -)