Question
Golden Industries manufactures a product with the following cost per unit at the expected production of 50000 units. Direct materials $8.54 Direct labour 11.45 Variable
Golden Industries manufactures a product with the following cost per unit at the expected production of 50000 units.
| Direct materials | $8.54 |
|
| Direct labour | 11.45 |
|
| Variable manufacturing overhead | 3.06 |
|
| Fixed manufacturing overhead | 6.57 |
|
The company has the capacity to produce 60000 units. The product regularly sells for $35.94. A regular customer has requested Golden Industries to provide a quote for a special order of 7328 units.
If Golden would like the special order to make a contribution to operating income of $29736, what sales price per unit should be quoted to the customer for the special order?
Select one:
a. $40.00
b. $23.05
c. $35.94
d. $27.11
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started