Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

multiple choice a) $35 b) $33 c) $40 d) $45 e) $30 f) $23 A company manutectures shorts, and it is considering whether or not

image text in transcribed
multiple choice
a) $35
b) $33
c) $40
d) $45
e) $30
f) $23
A company manutectures shorts, and it is considering whether or not should accento special order for 12,000 shirts. The normal selling price of a shirts $65 and its unt product cost is $20 as shown below Direct materials Direct labor Manufacturing overhead Un productos $8.00 $2.00 $10.00 $20.00 Most of the manufacturing overhead is fined, however, 30% of it is variable with respect to the number of its produced. The special order will require customizing the shirts for the customer with an additional direct materials cost of $6 per hand an additional direct labor cost of $4 per shit. I accept this order the company will have to rent special event to handle the customization at a cost of $120,000. The order would have no effect on the company's regular sales and it could be fulfilled using the company's iting capacity without affecting any other ordet What is the minimum fe, the break-even sales price per unit that the company should charge for this special order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Social Media Audit And Stats Audit And Statistics For Social Media Platforms

Authors: Virtual Desk Tools

1st Edition

B09JDX8Z9M, 979-8492994938

More Books

Students also viewed these Accounting questions