Question
Peach has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs: Per
Peach has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:
| Per unit | |||
| Direct materials | $ | 7 | |
| Direct labor | 4 | ||
| Variable manufacturing overhead | 3 | ||
| Fixed manufacturing overhead | 3 | ||
| Unit cost | $ | 17 | |
Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $15,000 incremental profit?
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
2nd Canadian Edition
1118168879, 9781118168875
