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Traveling Tamara makes and sells four-wheeled suitcases. Each suitcase regularly sells for $300. The following cost data per suitcase is based on a full capacity
Traveling Tamara makes and sells four-wheeled suitcases. Each suitcase regularly sells for $300. The following cost data per suitcase is based on a full capacity of 70,000 suitcases produced each period. Direct materials. $125 Direct labor. $60 Manufacturing overhead (80% variable and 20% unavoidable fixed) $40 Tamara has received a special order for a sale of 20,000 suitcases to an overseas customer. The only selling costs that would be incurred on this order would be $7 per suitcase for shipping. Tamara is now selling 30,000 suitcases through regular channels each period. What should be the minimum selling price per suitcase in negotiating a price for this special order
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