Question
Hogbrn684 Corporation makes and sells fancy remote controls. Each remote control regularly sells for $30. The following cost per remote control is based on a
Hogbrn684 Corporation makes and sells fancy remote controls. Each remote control regularly sells for $30. The following cost per remote control is based on a full capacity of 135,000 remote controls produced each period. Direct materials Direct labor $9 $6 Manufacturing overhead (50% variable and 50% unavoidable fixed) $8 (ID#75333). A special order has been received by Hogbrn684 for a sale of 15,000 remote controls to an overseas customer. The only selling costs that Hogbm684 would incur on this order would be $6 per remote control for shipping Hogbrn684 is now selling 120,000 remote controls through regular channels each period. Assume that direct labor is an avoidable cost in this decision. (Q) What should Hogbm684 use as a minimum selling price per remote control in negotiating a price for this special order
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