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

question 118

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: $$\begin{array} { l r } \text { Direct materials } & \$ 10 \text { per unit } \\\text { Direct labor } & 16 \text { per unit } \\\text { Variable overhead } & 4 \text { per unit } \\\text { Allocated fixed overhead } & 12 \text { per unit } \\\text { Allocated fixed selling expense } & 8 \text { per unit }\end{array}$$
What selling price per unit will this company require to earn $3,000 on the order?

---

Definitions:

Preoccupation

A state of mind consumed by persistent thoughts or concerns, often distracting from other aspects of life.

Food

Any nutritious substance that people or animals eat or drink or that plants absorb in order to maintain life and growth.

Semistarvation Diet

A diet that provides insufficient caloric intake to maintain normal body functions, often leading to severe physical and mental health consequences.

Anorexia Nervosa

Anorexia Nervosa is an eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to severe restriction of food intake.