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Company is approached by a customer to fulfill a one-time-only special order. Beta has excess capacity. The following per unit data apply for sales to
Company is approached by a customer to fulfill a one-time-only special order. Beta has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs:
Direct materials $120
Direct labor 60
Manufacturing support 105
Marketing costs 45
Fixed costs:
Manufacturing support 135
Marketing costs 45
Total costs 510
Markup (50%) 255
Targeted selling price $765
For Company, at what price per unit of this special order would operating income be the same whether or not it accepted the special order?
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