Question
Manufacturing details for a company appear below: Cost per unit of production and sales (at capacity of 60,000 units) Direct materials $15.00 Direct labor
Manufacturing details for a company appear below: Cost per unit of production and sales (at capacity of 60,000 units) Direct materials $15.00 Direct labor $12.00 Variable manufacturing overhead $8.00 Fixed manufacturing overhead $9.00 Variable selling expense $8.00 Fixed selling expense $3.00 $80.00 Regular selling price The company has been approached about taking a special order for 6,000 units. If the company decides to accept the special order, the variable selling expense would decline by 75% for units in the special order. A new machine costing $9,000 would be needed to provide the customization desired by the client of the special order. The company only expects to sell 50,000 units to regular customers. What is the minimum price per unit that the company should accept for the special order? (Worth 5 points) a) $49.00/unit b) $37.00/unit c) $51.50/unit d) $38.50/unit
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