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Decision Making 16 CAT Co. is a manufacturer of industrial components. One of their products that is used as a subcomponent in auto manufacturing
Decision Making 16 CAT Co. is a manufacturer of industrial components. One of their products that is used as a subcomponent in auto manufacturing is KB-96. This product has :the following financial structure per unit Selling price $150 $ 20 Direct materials 15 Direct labor 12 Variable manufacturing overhead 30 Fixed manufacturing overhead Shipping and handling 3 Fixed selling and administrative $ 90 10 Total costs Q: CAT. has received a special, one-time, order for 1,000 KB-96 parts. Assuming CAT has excess capacity, the minimum price that is acceptable for this one-time special order * ? is in excess of (3) )
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