1. The company has received a special, one-time-only order for 500 units of component K65. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Kava has no excess capacity and this

special order require 10 minutes of the constraining resources, which could be used instead to produce product with a total contribution margin of $11,000.

what is the minium price per unit on the special order below which the company should not go?

1) 60 2)81 3) 100 4) 22

2. Refer to the original data in the problem. what is the current contribution margin per unit for component k65 based on its selling price of $180 and its annual production of

4000 units?

1) 142 2) 102 3)40 4) 140