Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:Direct materials$15Direct labor21Manufaturing overhead3Total$39A special order to purchase 19,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $1 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?$_____ per unit Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:Direct materials$15Direct labor21Manufaturing overhead3Total$39A special order to purchase 19,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional$1 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixedand will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?per unit

The company should set up the minimum selling price where it can cover all the necessary costs. In…

Answered: Zena Technology sells arc computer…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:

Direct materials	$15
Direct labor	21
Manufaturing overhead	3
Total	$39

A special order to purchase 19,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $1 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?

$_____ per unit

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