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

question 23

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 total cost of $2,000.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 \begin{array}{lr}\text { Direct materials } & \$ 10 \text { per unit } \\\text { Direct labor } & 16 \text { per unit } \\\text { Variable overhead } & 4 \text { per unit } \\\text { Allocated fixed overhead } & 12 \text { per unit } \\\text { Allocated fixed selling expense } & 8 \text { per unit }\end{array}

What selling price per unit will this company require to earn $3,000 on the order?

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