Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Graham Omice Suppties Corporation makes and selts electric nole punchers. Fach puncher regularly seils for 334 The following cost data per buncher is based on
Graham Omice Suppties Corporation makes and selts electric nole punchers. Fach puncher regularly seils for 334 The following cost data per buncher is based on s full capacity of 91000 punchers produced esch period. A special order has been recelved by Graham for n sale of 20.000 punchers to an overseas customee. The only tetiling costs that would be incurted an this order would be 56 per puncher for shipping-Graham is now selling 66.000 punchers through regular channets each perlod and has capecity to manufacture punchers for this special order. Assume that direct labor is a variable cost in this decision. What thould Graham use as a minimum selling price per puncher in negotiating o price for this special order? Mutiple Crielce 325 per puncher 528 per puncher $30 per puncher $20 per puncher
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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