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Sandbrella males brach umbrellas and sell them at several boardwalk stops throughout the Jersey Shore. The following information is wailable, based on the regular monthly

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Sandbrella males brach umbrellas and sell them at several boardwalk stops throughout the Jersey Shore. The following information is wailable, based on the regular monthly production of 6.000 beach umbrellas $39 Sales price Costs Materials Labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling $S 59 $3 $4 $2 Total costs $23 A local company, Peperomia approaches Sandrelin June and wants to place a large order for 1,000 beach umbrellas to give out to its employees as gifts. Peperomia would like its name printed on the umbrellasso Sandbrella would need to buy a special machine for this purpose. The machine would cost $5,000 and Sandbrella would have no use for the machine after this order. Aside from the machine, Sandrelli's ehting fixed costs would not change. Peperomia asks for a discounted sales price due to the large nature of the order. Sandbrella has de capacity in June It could accept the special order without affecting regular production Assuming Sandbrella is willing to break even on the order but not lose money, what is the lowest sales price it would be willing to offer Peperomia on the beach umbrellas? $22 $26 $23 592

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