Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Inc is a manufacturing company. It has received a special order for 11,000 units of its product product cost is $20 as shown below The
Inc is a manufacturing company. It has received a special order for 11,000 units of its product product cost is $20 as shown below The normal selling price of one unit of is $70 and its unit Direct materials $8.00 Direct labor $2.00 Manufacturing overhead Unit product cost $10.00 $20.00 The company's manufacturing overhead cost is mostly fixed. Only 30% of manufacturing overhead varies with the number of units of T require customizing the produced. The special order wit for an additional direct materials cost of $4 per unit and an additional direct labor cost of $4 per unit. If S company will have to lease special equipment at a cost of $110,000 to do the customization. The company has sufficient excess capacity, and the special order would not affect accepts the special order, the the company's regular production and sales What is the minimum lie, the break-even) sales price that the company should charge per unit of the customized for this special order? Multiple Choice $31 O $28 521 $311
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started