How do I determine the lowest price Glendale could receive and still make a profit of $3,600 before income taxes on the special order? Rounding to two decimal places.

Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity Direct material $98,400 Direct labor 60,000 Variable manufacturing overhead 44,400 Fixed manufacturing overhead (Note !) 38/400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $291,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction thereof until a maximum capacity of 10,000 units is reached. 2. Selling expenses consist of a 6% sales commission and shipping costs of 80 cents per unit. Glendale pays only three fourths of the regular sales commission on sales totaling 501 to 1,000 units and only two-thirds the regular commission on sales totaling 1,000 units or more. Glendale's sales manager has received a special order for 1,200 units from a large discount chain at a price of $36 each, F.O.B. factory. The controller's office has furnished the following additional cost data related to the special order 1. Changes in the product's design will reduce direct material costs $1.50 per unit. 2. Special processing will add 20% to the per-unit direct labor costs. 3. Variable overhead will continue at the same proportion of direct labor costs. 4. Other costs should not be affected, a. Present an analysis supporting a decision to accept or reject the special order. (Round computations to the nearest cent) Differential Analysis Per Unit Total Differential revenue 43,200 Differential costs Direct material 10.8 Direct labor 9 v Variable manufacturing overhead 6.66 v Selling Commission 1.44 Shipping (F.O.B. factory terms) Total variable cost 27.9 33,480 Contribution margin from special order 9.720 Fixed cost. increment: Extra cost 5/400 Profit on special order 4,320 + b. What is the lowest price