Question
The company has received a special, one-time-only order for 300 units of component G62. There would be no variable selling expense on this special order
The company has received a special, one-time-only order for 300 units of component G62. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. However, assume that Mckerchie has no excess capacity and this special order would require 50 minutes of the constraining resource, which could be used instead to produce products with a total contribution margin of 6900 what is the minimuim price per unit on the special order below which company should not go.
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