Downtown Manufacturers makes and sells Iron box stands. Each unit sells for $220. The following cost data per stand are based on a full capacity of 10,000 stands each period: Direct materials $100 Direct labor $50 Variable manufacturing overhead $18 Unavoidable fixed overhead $12 Downtown is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $10 per computer. Downtown is currently selling 7,500 units through its regular orders. The company has enough capacity to accept this order. What should be the minimum selling price per stand in negotiating a price for the special order. Group of answer choices $180, $190, $220, $202, $178.
Ay 1.
Downtown Manufacturers makes and sells Iron box stands. Each unit sells for $220. The following cost data per stand are based on a full capacity of 10,000 stands each period:
Direct materials $100
Direct labor $50
Variable manufacturing overhead $18
Unavoidable fixed overhead $12
Downtown is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $10 per computer. Downtown is currently selling 7,500 units through its regular orders. The company has enough capacity to accept this order. What should be the minimum selling price per stand in negotiating a price for the special order.
Group of answer choices $180, $190, $220, $202, $178.
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