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Question 9 (10 points) Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling 40,000 shelves for $32 each.

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Question 9 (10 points) Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk: this saves Shelby $1.08 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $25.4 with fixed costs of $350.000. Because the shelves don't require packaging, the unit variable costs for the special order will drop by $1.08 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price PER SHELF that Shelby should accept for this special order? Your

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