AM Instrument Company manufactures miniature calculators, which it sells to a limited number of exclusive dealers.  AM’s normal production rate is 260 units per week at a total cost of $3,200.  At full capacity it can produce 340 units per week at a total cost of $3,800. What is the average cost per calculator under normal operating conditions? What is the average variable cost per calculator? What is the total fixed cost? What is the average fixed cost per calculator under normal operating conditions? A foreign distributor offers to buy 50 calculators per week from AM over a one month period, to be marketed under a different brand name.  The distributor offers a price of $10 per calculator.  Should AM accept the offer?  What is the least price AM should accept for this kind of arrangement?

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