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Simun Company makes and sells a product that regularly sell for $38.95 each. The following information is available for the current year: Annual maximum capacity
Simun Company makes and sells a product that regularly sell for $38.95 each. The following information is available for the current year: Annual maximum capacity in units 6,500 Current annual production in units 6,200 Budgeted absorption cost per unit: Direct materials $9.95 Direct labor Manufacturing overhead (70% variable) $3.40 $2.65 A new customer approached the company with a one-time all-or-nothing order for 800 units. The special-order units are identical to the regular ones, with one exception: the customer would like their business logo engraved on each unit. It will cost $3 to engrave the logo. Q.: The minimum total sales revenue from the special order that would be acceptable to the company is: A.:$
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