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This month, Alex approached Frankie and Jo's with a proposal to buy 2,000 pints of ice cream for $10 each. The regular sales price of
This month, Alex approached Frankie and Jo's with a proposal to buy 2,000 pints of ice cream for $10 each. The regular sales price of pints of ice cream is $13. Frankie and Jo's is able to produce up to 12,000 pints of ice cream per month. Frankie and Jo's has the following costs for their normal monthly production and sale of 10,000 pints: Direct Materials / pint $6.00 Direct Labor / pint $2.00 Variable MOH / pint $1.9 Fixed MOH / pint $1.85 What is the minimum acceptable price per unit Frankie and Jo's would accept from Alex?
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