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Please explain in detail how did you get to the answer. Thank you! ration has been producing and selling 30,000 caps a year. The company

Please explain in detail how did you get to the answer. Thank you! image text in transcribed
ration has been producing and selling 30,000 caps a year. The company has the capacity to produce aps with its present facilities. The following inf is also available: S35 $14 2 Selling price per unit: Variable costs per unit: Manufacturing Selling and Administrative $6 Fixed costs in total: Manufacturing Selling and Administrative $128,000 $56,000 Gilbert Company has contacted Salisbury about purchasing 16.000 units at 20,000 units (ali or nothing) right now also contacted Salisbury, Salisbury has to reduce its existing sales when selling cither to Gilbert or to the new customer. For the new customer, variable selling and administrative.cos would not be incurred. Unfortunately, Salisbury cannot sell both to Gilbert Company and the new customer. What is $24 each. A new customer who wants sbury s minimum price to accept the offer from the new customer (instead of Gilbert Company)? 22.40 $23.50 C. $20.00 D. $29.50 24 2) 1200o E. None of the above

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