Stella Co. sells “BJS” at a unit price of P 36,000, with the following unit production costs: Direct materials P 12,000 Direct labor 8,000 Variable overhead 6,000 Fixed overhead 4,000 A special order for 1,000 units was received from Marie, a well-known BJS distributor based in Makati. Additional shipping costs for this sale are P4,000 per unit. REQUIREMENTS: What is the minimum selling price per unit for the special order if: 1. Stella is operating at FULL capacity? 2. Stella has EXCESS capacity?
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Stella Co. sells “BJS” at a unit price of P 36,000, with the following unit production costs:
Direct materials P 12,000
Direct labor 8,000
Variable
Fixed overhead 4,000
A special order for 1,000 units was received from Marie, a well-known BJS distributor based in Makati. Additional shipping costs for this sale are P4,000 per unit.
REQUIREMENTS:
What is the minimum selling price per unit for the special order if:
1. Stella is operating at FULL capacity?
2. Stella has EXCESS capacity?
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