Grant Industries, a manufacturer of electronic parts, has recently received an invitation to bid on a special order for 20,500 units of one of its most popular products. Grant currently manufactures 41,000 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 bid at $15 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.

Units 41,000 61,500

Manufacturing costs:

Direct materials 164,000 $246,000

Direct labor 205,000 307,500

Factory overhead 328,000 430,500

Total manufacturing costs $697,000 $984,000

Unit cost $17 $16

What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short-term operating income if the order is accepted at the price recommended by the sales manager?

Please answer the part in bold. I already got $14 as the correct answer for Relevant cost per unit and Bid price per unit. This isn't making any sense because they don't seem to give me a given sales price.