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Assume the following cost data: Per-unit costs: Direct material $6 Direct labour $4 Variable overhead $2 Variable selling $4 Fixed overhead $300 Fixed selling $400
Assume the following cost data: Per-unit costs:
Direct material $6
Direct labour $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 labour 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? a) $1,925 b) $1,775 c) $2,225 d) $2,075
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