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Violet has received a special order for 190 units of its product. The product normally sells for $2,100 and has the following manufacturing costs: Per
Violet has received a special order for 190 units of its product. The product normally sells for $2,100 and has the following manufacturing costs:
Per unit | |||
Direct materials | $ | 620 | |
Direct labor | 300 | ||
Variable manufacturing overhead | 400 | ||
Fixed manufacturing overhead | 500 | ||
Unit cost | $ | 1,820 | |
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 $51,300 incremental profit?
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