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Sandbrella maloos beach umbrellas and sells them at several boardwalk shops throughout the Jersey Shore. The following information is available, based on the regular monthly
Sandbrella maloos beach umbrellas and sells them at several boardwalk shops throughout the Jersey Shore. The following information is available, based on the regular monthly production of 6,000 beach umbrellas $39 Sales price Costs: Materials bor Variable manufacturing overhead Foxed manufacturing overhead Fixed selling SS 59 33 $4 $2 Total costs $23 A local company. Peperomia, approaches Sandbrein in 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 umbrellas, so 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 Sandbella's existing hood costs would not change. Peperomia asks for a discounted sales price, due to the large nature of the order Sandbella has ille capacity in June - It could accept the special order without affecting regular production Assuminy Sandbrella's willing to break even on order but not lose money, what is the lowest sales price it would be willing to offer Peperomia on the beach umbrellas? $22 $26 $23 517
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