Homestead Jeans Co. has an annual plant capacity of 60,300 units, and current production is 47,100 units. Monthly fixed costs are $54,600, and variable costs are $32 per unit. The present selling price is $45 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 11,000 units of the product at $36 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.

Labels and Amount Descriptions:

Labels
Cash flows from operating activities
Costs
Amount Descriptions
Cash payments for merchandise
Cash received from customers
Income (loss)
Revenues
Variable manufacturing costs

Differential Analysis

Reject Order (Alternative 1) or Accept Order (Alternative 2)

November 12

1		Reject Order	Accept Order	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3
4
5
6

What is the minimum price per unit that would produce a positive contribution margin? If required, round your answer to two decimal places.