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Grant Industries, a manufacturer of electronic parts, has recently received an Invitation to bid on a special order for 22 500 units of one of

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Grant Industries, a manufacturer of electronic parts, has recently received an Invitation to bid on a special order for 22 500 units of one of its most popular products. Grant currently manufactures 45.000 units of this product in its Loveland, Ohio, plant. The plant is operating at 50% capacity. There will be no marketing costs on the special order. The sales manager of Grant wants to set the bld at $9 because she is sure that Grant will get the business at that price. Others on the executive committee of the firm object, saying that Grant would lose money on the special order at that price. 45,000 62,500 units Manufacturing costs direct materials Direct labor Factory overhead Tatract costs $ 90,00 135,000 27e, cee $495.000 $135, eee 202 see 337,500 $625,000 cost $ 11 5 10 Required 2. What is the relevant cost per unit. What do you think the minimum short-term old price per unit should be? What would be the pad on short-term operating income if the order is accepted at the price recommended by the sales manager? What would the total opportunity cost be if by accepting the special order the company lost sales of 6,300 units to its regulor customers Assume the preceding facts plus a normal selling price of $20 per unit Complete the question by entering your answers in the tabs below. RA Fruired AE thor Helevans cost per unit? What do you think the minimum short-term ble price per unit should be? What would be PIN 13 HE Next > to search O $ W

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