Question
4. Sandy Corporation has the following information for their product: Sales $20.00 per unit Variable costs $7.00 per unit Fixed overhead $25,000 The above information
4. Sandy Corporation has the following information for their product: Sales $20.00 per unit Variable costs $7.00 per unit Fixed overhead $25,000 The above information is based on production of 3,000 units. The company can produce 5,000 units annually. A. A special order request was received for 200 units. Calculate the minimum selling price that Sandy Corporation should accept for the special order of 200 units. B. What would the impact to income be if they accepted a selling price of $10 per unit? C. Would your answer change if they had to incur an additional $1.50 in set-up costs per unit associated with fulfilling the special order? What would be the minimum selling price under this scenario?
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