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Zorro Corp. manufactures childrens costumes. Per unit production costs for a basic cape and mask at $9.75/unit broken down as follows: direct materials $1.50; direct
Zorro Corp. manufactures childrens costumes. Per unit production costs for a basic cape and mask at $9.75/unit broken down as follows: direct materials $1.50; direct labour $3.50; variable manufacturing overhead $2.00; fixed manufacturing overhead $2.75. These units are regularly priced at $15.00 per unit. What is the lowest price Zorro Corp. should consider a basic cape/mask for as part of a special order?
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Per unit production cost is 975 This consists of Direct materials 150 Di...Get Instant Access to Expert-Tailored Solutions
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