Gardener Company currently is using its full capacity of 25,000 machine hours to manufacture product XR-2000. LJB Corporation placed an order with Gardener for the manufacture of 1,000 units of KT-6500. LJB would normally manufacture this component. However, due to a fire at its plant, LJB needs to purchase these units to continue manufacturing other products. This is a one time special order. The following reflects unit cost data, and selling prices. Material Direct labor Variable overhead Fixed overhead Variable selling & administrative Fixed selling & administrative Normal selling price Machine hours required KT-6500 $27 12 6 852 48 12 $125 3 XR-2000 $24 10 5 40 4 10 $105 + What is the minimum unit price that Gardener should charge LJB to manufacture 1,000 units of KT- 6500?

Gardener Company currently is using its full capacity of 25,000 machine hours to manufacture product XR-2000. LJB Corporation placed an order with Gardener for the manufacture of 1,000 units of KT-6500. LJB would normally manufacture this component. However, due to a fire at its plant, LJB needs to purchase these units to continue manufacturing other products. This is a one time special order. The following reflects unit cost data, and selling prices. What is the minimum unit price that Gardener should charge LJB to manufacture 1,000 units of KT6500