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Assume the following cost data: Direct material $6; Direct labor $4; Variable overhead $2; Variable selling $4; Fixed overhead $300; Fixed selling $400. A special
Assume the following cost data: Direct material $6; Direct labor $4; Variable overhead $2; Variable selling $4; Fixed overhead $300; Fixed selling $400. A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labor costs by $0.25 per unit and cost $300 for the stamping machine. What price must be charged to earn $300 on the special order?
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