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 1500 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby one dollar and $.60 per shelf compared to the normal packaging cost. shelves have a unit variable cost of $27 with fixed cost of $350,000. Because the shelves don't require packaging the unit variable cost for the special order will drop from $27 per shelf to $25.40 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for the special order?

SW Industries has a capacty to produce 45,000 oak chulves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has worshed Shelby about bus 1.500 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in this saves Shelt 51 60 per shelf compared to the normal packaging cost. Shelves avea un vantable cost of $27 with fixed costs of $350,000. Because the shelves don't require packaging, the unit variable costs for the special order will drop from $97 pet shell to $25.40 per shell Shelty has enough ide capacity to accept the contract. What is the minimum price per shell that Shelley should accept for the special order? per she