Question
Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $38. The following cost data per fan is based on a full
Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $38. The following cost data per fan is based on a full capacity of 1,000 fans produced each period. Direct materials Direct labor Manufacturing overhead (80% variable and 20% unavoidable fixed) 59 $10 $ 10 on this order would costs that would be incurred that direct labor is an avoidable cost in this decision A special order has been received by Landor for a sale of 30,000 fans to an overseas customer. The only selling be $3 per fan for shipping. Landor is now selling 138,000 fans through regular channels each period. Assume What should Landor use as a minimum selling price per fan in negotiating a price for this special order? would be $3 per fan for shipping. Landor is now selling 138,000 fans through regular channels each period. Assume that direct labor is an avoidable cost in this decision. What should Landor use as a minimum selling price per fan in negotiating a price for this special order? Multiple Choice O $32 per fan O $29 per fan O O $30 per fan $27 per fan
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