Siggis Inc makes and sells a special probiotic organic yogurt from a unique breed of cows feed only sake and high quality corn in jars . Each jar regularly sells for $31. The following cost data per bottle is based on a full capacity of 91,000 jars produced each period:

Direct materials $ 8

Direct labor $ 6

Manufacturing overhead ( 60 % variable and 40 % unavoidable fixed ) $10

A special order has been received by Siggi's for a sale of 20,000 jars to an overseas customer . Additionally , selling costs that would be incurred on this order would be $ 6 per jar for shipping . Siggi is now selling 120,000 jars through regular channels each period . Assume that direct materials , direct labor and the variable overheard are avoidable costs in this decision . The fixed portion of overhead is unavoidable and would be incurred regardless of the decision . What should Siggi use as a minimum selling price per jar in negotiating a price for this special order ?

a. $30 per fan

b. $28 per fan

c. $26 per fan

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