A company is currently operating at 60% capacity producing 10,000 units.Cost information relating to this current production is shown in the following table:
The company has been approached by a customer with a request for a special order for 5,000 units.What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?
Definitions:
Sale of Goods
A commercial transaction in which a seller transfers or agrees to transfer goods to a buyer for a monetary consideration, under terms and conditions.
Writing Requirement
The writing requirement refers to legal stipulations that certain types of contracts or agreements must be in written form to be legally enforceable.
Legal Proceeding
A process by which a legal matter is resolved in a court of law.
Oral Contract
An agreement between parties that is made verbally instead of being documented in writing.
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