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Problem 1 of 3 Zenia Technology sells arc computer printers for $55 per unit. Unit product costs are: Direct materials Direct labor 14 20
Problem 1 of 3 Zenia Technology sells arc computer printers for $55 per unit. Unit product costs are: Direct materials Direct labor 14 20 4 Manufacturing overhead 4 5 Total 38 6 7 A special order to purchase 12,000 arc printers has recently been received from another company 8 and Zenia has idle capacity to fill the order. Zena will incur an additional $3 per printer for additional 9 labor costs due to a slight modification the buyer wants made to the original product. One-third of 10 the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. 11 When negotiating the price, what is the minimum selling price that Zenia should accept for this special order? 12 (show your work-not showing work scores zero--record your final answer in the grey cell) 13 14 Minimum selling price = 15 16
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