The Dawg Corporation produces a single product. Dawg has the capacity to

produce $60,000$ units each year. If Dawg produces at capacity, the per unit costs

to produce and sell one unit are as follows:

The regular selling price for one unit is $$80.$ Dawg received a special order from

Hoo. Hoo desires to purchase $6,000$ units next year. If this special order is

accepted, the variable selling expense will be reduced to $$2$ per unit. However,

Dawg will have to purchase a specialized machine to engrave the Hoo name on

each unit in the special order. This machine will cost $$9,000$ and it will have no

use after the special order is filled. Current fixed manufacturing overhead and

fixed selling expenses would be unaffected by this special order. Direct materials

and direct labor are variable costs.

Assume Dawg anticipates selling only $50,000$ units to regular customers next

year. If Dawg accepts the special order from Hoo, what is the unit selling price for

the $6,000$ special order units would Dawg need to set in order to breakeven?

$$42\mathrm{.}50$ per unit

$$49\mathrm{.}00$ per unit

$$51\mathrm{.}50$ per unit

$$38\mathrm{.}50$ per unit

$$37\mathrm{.}00$ per unitThe Dawg Corporation produces a single product. Dawg has the capacity to produce $60,000$ units each year. If Dawg produces at capacity, the per unit costs to produce and sell one unit are as follows:

Direct materials $$15$

Direct labor $$12$

Variable manufacturing overhead $$8$

Fixed manufacturing overhead $$9$

Variable selling expense $$8$

Fixed selling expense $$3$

The regular selling price for one unit is $$80.$ Dawg received a special order from Hoo. Hoo desires to purchase $6,000$ units next year. If this special order is accepted, the variable selling expense will be reduced to $$2$ per unit. However, Dawg will have to purchase a specialized machine to engrave the Hoo name on each unit in the special order. This machine will cost $$9,000$ and it will have no use after the special order is filled. Current fixed manufacturing overhead and fixed selling expenses would be unaffected by this special order. Direct materials and direct labor are variable costs.

Assume Dawg anticipates selling only $50,000$ units to regular customers next year. If Dawg accepts the special order from Hoo, what is the unit selling price for the $6,000$ special order units would Dawg need to set in order to breakeven?

Group of answer choices

$$42\mathrm{.}50$ per unit

$$49\mathrm{.}00$ per unit

$$51\mathrm{.}50$ per unit

$$38\mathrm{.}50$ per unit

$$37\mathrm{.}00$ per unit