Special order pricing Shorewood Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and sizes, the average selling price and costs per pair of shoes are as follows:

Shoes are manufactured in batch sizes of 100 pairs. Each batch requires five ma¬ chine hours to manufacture. The plant has a total capacity of 4000 machine hours per month, but current month production consumes only about 80% of the capacity.
A discount store has approached Shorewood to buy 10,000 pairs of shoes next month. It has requested that the shoes bear its own private label. Embossing the private label will cost Shorewood an additional $0.50 per pair. However, there will be no variable selling support cost for this special order.
Determine the minimum price that Shorewood Shoes should charge for this order. What other considerations are relevant in this decision?

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ITEM Price Costs: Direct materials Direct labor Variable manufacturing support Variable selling support Fixed support Total costs AMOUNT $20 $ 6 4 2 1 3. $16