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Kanada Inc. currently produces a product with the following cost characteristics: Item Amount Plant capacity 41,250 units Current product/sales volume Selling price 36,000 units $85
Kanada Inc. currently produces a product with the following cost characteristics: Item Amount Plant capacity 41,250 units Current product/sales volume Selling price 36,000 units $85 Variable cost- - production 29.75 Variable cost-selling and administrative 12.25 Total fixed costs $922.000 A customer approaches Kanada Inc. for a special one-time order to purchase 9,500 units. 69% of current variable selling and administrative costs would be incurred with this order Kanada Inc. will also have to purchase a special machine which will only be used on this order at a cost of $63,250. Assuming Kanada Inc. would purchase the machine, what is the minimum acceptable per unit price for this order? Input your answer as a number with two decimal places (for example, 12.34)
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