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. is a manufacturing company. It has received a special order for 13,000 units of its product The normal selling price of one unit of
. is a manufacturing company. It has received a special order for 13,000 units of its product The normal selling price of one unit of Direct materials $8.00 $2.00 Direct labor Manufacturing overhead $10.00 Unit product cost $20.00 The company's manufacturing overhead cost is mostly fixed. Only 30% of manufacturing overhead varies with the number of units of additional direct materials cost of $5 per unit and an additional direct labor cost of $5 per unit. If customization. The company has sufficient excess capacity, and the special order would not affect the company's regular production and sales. for this special order? What is the minimum (i.e., the break-even) sales price that the company should charge per unit of the customized Multiple Choice $31 O O O $38 $30 $23 is $52 and its unit product cost is $20 as shown below: produced. The special order will require customizing the s for an S accepts the special order, the company will have to lease special equipment at a cost of $104,000 to do the
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