A company’s current cost information relating to its production is shown in the table below: Per Unit Sales price $ 43 Direct material $ 7 Direct labor $ 6 Variable overhead $ 4 Fixed overhead $ 4 The company has been approached by a customer with a request for a 200-unit special order. What is the minimum per unit sales price that management would accept for this order, assuming the company has sufficient excess capacity?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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A company’s current cost information relating to its production is shown in the table below: Per Unit Sales price $ 43 Direct material $ 7 Direct labor $ 6 Variable overhead $ 4 Fixed overhead $ 4 The company has been approached by a customer with a request for a 200-unit special order. What is the minimum per unit sales price that management would accept for this order, assuming the company has sufficient excess capacity?

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