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D) Gemtron Company is a diversified electronics company specializing in manufacturing semiconductor chips for a number of products for global organizations. Recently, the company received
D) Gemtron Company is a diversified electronics company specializing in manufacturing semiconductor chips for a number of products for global organizations. Recently, the company received a special order from a potential new customer. Company A requested that Gemtron manufacture 10.000 semiconductor chips. Gemtron is operating at 90% of its total capacity: therefore, it can fulfil the order without disruption to its normal operations. Gemtron's semiconductor chips normally sells its chips for $20. The finance department provided the following manufacturing cost data to manufacture one chip: direct material $6. direct labor $3. variable manufacturing overhead $2 and fixed manufacturing overhead of $6. Assuming Gemtron accepts the request to fill the special order, what is the minimum unit price should Gemtron charge per unit to make a $10,000 incremental profit? (Show your work and calculations) (20 pts)
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