Question
A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this production is shown in the table below: Per
A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this production is shown in the table below: Per Unit Sales price $34 Direct material $2 Direct labor $3 Variable overhead $4 Fixed overhead $5 The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits? Any amount over $34 per unit. Any amount over $20 per unit. Any amount over $14 per unit. Any amount over $9 per unit. Any amount over $5 per unit.
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