The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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Question

A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this
production is shown in the table below:
Per Unit
$34
Sales price
Direct material
$2
Direct labor
$3
Variable
$4
overhead
Fixed overhead
$5
The company has been approached by a customer with a request for a 100-unit special order. What is the
minimum per unit sales price that management would accept for this order if the company wishes to increase
current profits?
O Any amount over $34 per unit.
O Any amount over $20 per unit.
O Any amount over $14 per unit.
Any amount over $9 per unit.
O Any amount over $5 per unit.
F2
F3
F7
F8
F9
2
O+
#
3
F4
tA
4
F5
%
5
F6
6
&
7
*

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