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Watches Inc. makes a watch selling for $50 per unit. Operating within its relevant range they have excess capacity to make 200,000 watches. The unit
Watches Inc. makes a watch selling for $50 per unit. Operating within its relevant range they have excess capacity to make 200,000 watches. The unit costs for financial statement purposes are $10 for direct materials, $7 for direct labor, $5 for variable overhead and $12 in fixed costs. The company has been offered a special order for 5,000 military watches that are identical to the current product but will require an additional $2 each for a special fitting. What is the incremental breakeven selling price per unit for the special order? a.$34 b.$24 c.$22 d. $39 e. None of the above values are correct. Using the information from the previous question, what should be the special order price per watch for the company to increase its
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