Question
Personali Company maufactures and sells 60000 widgets per year. Personali has production capacity of 80000 widgets. The cost of building and selling a widget is
Personali Company maufactures and sells 60000 widgets per year. Personali has production capacity of 80000 widgets. The cost of building and selling a widget is computed as follows (for fixed costs, the per unit rate is based on the current sales and production level): Direct materials............................$39 Direct labor..................................$16 Variable manufacturing overhead....$8 Fixed manufacturing overhead........$4 Sales commission (variable selling)....$2 Fixed selling costs........$1 Personali normally sells the widget for 150% of the total cost (including selling costs). A new customer wants to place a one time order for 8000 widgets at $66.00 each. No commissions would apply to the special order. However, Personali will need to pay a one-time fee of $800for a special license to do business in the customer's country. What is the regular selling price of one widget? By how much will Personali's Company's income change if it decides to accept the special order? Give me the amount with a negative sign if income would decrease. Input just the amount if income would increase. Input 0 if income would not change. (Round any per unit amounts in intermediary computations and final answers to the nearest penny, when needed
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