Question
Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 10% markup to full costs and currently has excess capacity.
Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 10% markup to full costs and currently has excess capacity. The following information pertains to the companys normal operations per month
Output units | 30,000 tables |
Machine-hours | 4,000 hours |
Direct manufacturing labor-hours Direct materials per unit | 14,000 hours |
Direct materials per unit | $140 |
Direct manufacturing labor cost per unit | $14 |
Variable manufacturing overhead costs per unit | $18 |
Fixed manufacturing overhead costs | $1,500,000 |
Product and process design costs | $1,400,000 |
Marketing and distribution costs | $1,000,000 |
Required(Show your calculation):
Grounded Coffee Products is approached by an overseas customer to fulfill a one-time-only special order for 5000 units. All cost relationships remain the same except for a one-time setup charge of $60,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order? (Round your final answer to the nearest cent.)
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