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21 Farnsworth Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per television are based on a
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Farnsworth Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per television are based on a full capacity of 12,000 televisions produced each period: Direct materials $75 Direct labor $55 Manufacturing overhead a $48 75% variable, 25% unavoidable fixed A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping Farnsworth is now selling 7,200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order? $200 $166 $178 $176Step by Step Solution
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