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Question 6 5 Cypress Inc. manufactures wooden canoes. Cypress normally sells the cances for $2.700 per major distributor has offered to buy 1.000 units at
Question 6 5 Cypress Inc. manufactures wooden canoes. Cypress normally sells the cances for $2.700 per major distributor has offered to buy 1.000 units at a reduced price. At the budgeted level of production. Cypress per unit manufacturing costs are as follows: Direct materials $950 Direct labor $200 Variable manufacturing overhead $330 Fixed manufacturing overhead $450 Cypress would have to produce the special order on an overtime shift, which would increase the labor costs to $300 per unit. The special order would not impact Cypress foxed costs. However, if Cypress accepts the special order, it will also incur $60,000 in additional, one-time costs in connection with the order. What is the minimum per-unit selling price that Cypress must charge to break even on the special order? 51.480 $1.580 $1.540 $2.090 None of the above
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