A Company Has Just Received a Special, One-Time Order for 1,000

question 121

Essay

A company has just received a special, one-time order for 1,000 units. Producing the order will have no effect on the production and sales of other units. The buyer's name will be stamped on each unit, at a cost of $1.50 per unit. Normal cost data, excluding stamping, follows:
Direct materials…………………………… $ 10 per unit Direct labor……………………………….. 16 per unit Variable overhead………………………… 4 per unit Allocated fixed overhead…………………. 12 per unit
Allocated fixed selling expense…………… 8 per unit
Prepare an analysis that indicates the selling price per unit this company will require to earn $3,000 on the order.

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Definitions:

Medial Geniculate Nucleus

A part of the thalamus in the brain involved in auditory processing and the relay of sound information from the ear to the auditory cortex.

Auditory System

The sensory system involved in the process of hearing, including the ears and the brain pathways that process sound.

Organ of Corti

The Organ of Corti is a structure located in the cochlea of the inner ear, responsible for converting sound vibration waves into electrical signals that can be interpreted by the brain as sound.

Inner Hair Cells

Sensory cells located in the cochlea of the inner ear, playing a crucial role in converting sound waves into nerve signals.