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Zorro Corp. manufactures children's 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 children's 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? Question 7Answer a. An amount in excess of $7.00 b. An amount in excess of $5.00 c. An amount in excess of $5.25 d. An amount in excess of $9.75

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