Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below:

Per Unit

Selling price $1.50

Direct materials $ 26

Direct labor $ 3

Variable manufacturing overhead $ 1

Fixed manufacturing overhead $ 17

Variable selling expense $ 2

Fixed selling and administrative expense $ 18

The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost.

The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Dockwiller has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order?

$67 per unit

$150 per unit

$30 per unit

$47 per unit

Dochwerin, manufactures industrial components. One of products, which is in the construction in conditions nown as 53. Data concentroducten $150 5.76 S3 $1 Soling price Direct Directa Variating thoud Had manufacturing overhead gene Feeding and we The above per un data based on production of 8.000 units of the component Debris a vicou The company has received a special one time wordel for units of components. There would be ableng on this speciale del and Administrative excess of the company would not be affected by the ordet. Assuming that we care without cuting Back on the product well minimum priceperunt below wich the company once O Sobert 1950 $30 per unit 547 petu