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QUESTION 5 units. 100,000 80.00% capacity 30,000 $9.00 units. per unit Philip Products Company is producing a patented electronic component. Budgeted production = The market
QUESTION 5 units. 100,000 80.00% capacity 30,000 $9.00 units. per unit Philip Products Company is producing a patented electronic component. Budgeted production = The market demand is a little sluggish temporarily and the company is budgeted to operate at Philip recently received an order from Terry Corporation. Terry is not a regular customer for Philip. Terry offers to purchase, strictly as a one time deal, (i.e., special order) for a quantity of Current selling price of Philip to its regular customers Budgeted costs (for the budgeted production quantity) are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $140,000 $150,000 $160,000 $240,000 What is the minimum acceptable special order selling price for Philip Products Company? O A. $5.25 B. $6.00 OC. $9.00 D. $6.90 OE. $4.50
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