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SOFT Micro Company, sells part number 1 9 7 3 for $ 2 4 0 per unit and the standard cost of producing each unit
SOFT Micro Company, sells part number for $ per unit and the standard cost of producing each unit of part number is determined as follows:
Direct material pounds $ per pound
Direct labor hours @ $ per hour
Overhead hours a $ per hour
Total
SOFT received a special order for units of part number The only additional cost to SOFT is a special packaging requirement that would cost $ per unit.
Required:
a If SOFT were currently able to sell all of its production of part number what would be the minimum sales price that SOFT should consider for this special order?
b Assume that SOFT has enough idle capacity to produce units of part number and that overhead is variable. If SOFT wants to increase its operating profit by $ what price per unit would SOFT charge for the special order?
a Minimum unit price
b Special order price per unit
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