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Acme Company manufactures widgets. At the budgeted annual production level of 4,000 units, Acme's per-unit manufacturing costs of a widget are as follows: direct materials
Acme Company manufactures widgets. At the budgeted annual production level of 4,000 units, Acme's per-unit manufacturing costs of a widget are as follows: direct materials $28, direct labor $10, variable overhead $45, and fixed overhead $16. A customer has offered to buy 500 units at a reduced price. Accepting the special order would not impact Acme's fixed costs or its variable selling and administrative expenses. On the other hand, Acme currently has no excess capacity and the special order would require 30 hours of machine time, which could be used instead to produce products with a total contribution margin of $6,000. What is the minimum per-unit selling price that Acme must charge to break even on the special order? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
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