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Violet has received a special order for 100 units of its product. The product normally sells for $2,000 and has the following manufacturing costs: Per
Violet has received a special order for 100 units of its product. The product normally sells for $2,000 and has the following manufacturing costs:
Per unit | |||
Direct materials | $ | 620 | |
Direct labor | 380 | ||
Variable manufacturing overhead | 470 | ||
Fixed manufacturing overhead | 310 | ||
Unit cost | $ | 1,780 | |
Assume that Violet has sufficient capacity to fill the order without harming normal production and sales. What minimum price should Violet charge to achieve a $15,000 incremental profit?
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