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Country jeans Company has an annual plant capacity of 64,500 units, and current production is 44,000 units. Monthly fixed costs are $41,800, and variable costs
Country jeans Company has an annual plant capacity of 64,500 units, and current production is 44,000 units. Monthly fixed costs are $41,800, and variable costs are $25 per unit. The present selling price is $37 per unit. On November 12 of the current year, the company received an offer from Miller company for 14,900 units of the product at $28 each. Miller company will market the units in a foreign country under its own brand-name. The additional business is not expected to affect the domestic selling price or quantity of sales of country chains company. Differential Analysis Reject Order (Alt. 1) or Accept Order (Allt. 2) November 12 c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places
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