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Haskins Company Is Currently Operating at a Loss of $15,000

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Haskins Company is currently operating at a loss of $15,000.The sales manager has received a special order for 5,000 units of product,which normally sells for $35 per unit.Costs associated with the product are: direct material,$6; direct labor,$10; variable overhead,$3; applied fixed overhead,$4; and variable selling expenses,$2.The special order would allow the use of a slightly lower grade of direct material,thereby lowering the price per unit by $1.50 and selling expenses would be decreased by $1.If Haskins wants this special order to increase the total net income for the firm to $10,000,what sales price must be quoted for each of the 5,000 units?

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