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Example: Award Plus manufactures medals for winners of athletic events. The company has a maximum manufacturing capacity per month of 10,000 medals, and is currently
Example: Award Plus manufactures medals for winners of athletic events. The company has a maximum manufacturing capacity per month of 10,000 medals, and is currently operating at 75% of that capacity. Each medal normally sells for $175. Current unit product costs are as follows: Variable Costs Manufacturing Labor Material Marketing Total Variable Costs Fixed Costs Manufacturing Marketing Total fixed costs Total unit costs $50 35 25 $110 $37 23 60 $170 Award Plus has received a special one-time order for 2,500 medals at $100 per medal. No variable marketing costs would be incurred for this order. Determine the minimum acceptable price for a special order and whether the proposal should be accepted
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