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18 Wagner Company sells Product A for $21 per unit. Wagner's unit product cost based on the full capacity of 200,000 units is as follows:
18 Wagner Company sells Product A for $21 per unit. Wagner's unit product cost based on the full capacity of 200,000 units is as follows: n ut of Direct Materials $5.9 59 Direct Labour Manufacturing Overhead $10 A special order offering to buy 20,000 units has been received from a foreign distributor. The only selling costs that would be incurred on this order would be 53 per unit for shipping. Wagner has sufficient idle capacity to manufacture the additional units. Two-thirds of the manufacturing overhead is foved and would not be affected by this order. Assume that direct labour is an avoidable cost in this decision in negotiating a price for the special order, what should be the minimum acceptable selling price per unit
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