Philip Products Company is producing a patented electronic component. Budgeted production = 100,000 units.

The market demand is a little sluggish temporarily and the company is budgeted to operate at 80.00% capacity

Philip recently received an order from Terry Corporation. Terry is not a regular customer for Philip. Terry oers to purchase, strictly as a one time deal, (as a special order) for a quantity of50,000 units. Current selling price of Philip to its regular customers $9.00 per unit Budgeted costs (for the budgeted production quantity) are as follows:

Direct materials $140,000

Direct labor $150,000 V

ariable manufacturing overhead $160,000

Fixed manufacturing overhead $240,000

What is the minimum acceptable special order selling price for Philip Products Company?