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Kingbird World is a company that manufactures a workout product known as CardioBands. These bands are designed to help users elevate their heart rates without
Kingbird World is a company that manufactures a workout product known as CardioBands. These bands are designed to help users elevate their heart rates without exerting excessive effort. The product is made from rubber bands, and the cost breakdown for manufacturing and selling each unit includes direct materials at $1.05, direct labor at $0.75, variable manufacturing overhead at $0.30, fixed manufacturing overhead at $1.45, variable selling, general, and administrative expenses at $0.30, and fixed selling, general, and administrative expenses at $1.00, totaling $4.85 per unit. Kingbird World typically sells CardioBands for $12 each. However, they have considered a special price of $215 for an order of 50 units from Jerry's Gym, which intends to use them in cardio classes. The company has the production capacity to fulfill this special order
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