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Please provide detailed help. 15. Juline Company produces a single product. The cost of producing and selling a single unit of this product at the
Please provide detailed help.
15. Juline Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct labor Variable manufacturing overhead Fixed manufacturing overhead.... Variable selling and administrative expense Fixed selling and administrative expense $53.60 $5.30 $1.40 $13.20 $1.60 $9.10 The normal selling price of the product is $91.90 per unit. A special order has been received from an overseas customer for 3,000 units. The variable selling and administrative expense would be $1.00 less per unit on this order than on normal sales 15.1. Suppose the company does not have enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on sales of 2,400 units for regular customers. What would be the minimum acceptable price per unit for the special order? a. S90.90 b. $85.90 c. S91.60 d. $84.90 e. S92.60Step by Step Solution
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