A company has just received a special, one-time order for 1,000 units. Producing the order will have no effect on the production and sales of other units. The buyer's name will be stamped on each unit, at a cost of $1.50 per unit. Normal cost data, excluding stamping, follows:

Direct materials $ 10 per unit

Direct labor.. 16 per unit

Variable overhead 4 per unit

Allocated fixed overhead. 12 per unit

Allocated fixed selling expense 8 per unit

Prepare an analysis that indicates the selling price per unit this company will require to earn $3,000 on the order.

Answer rating: 100% (QA)

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