Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as G62. Data concerning this product are given below: 
The above per unit data are based on annual production of 9,000 units of the component. Direct labor can be considered to be a variable cost.
-The company has received a special,one-time-only order for 300 units of component G62.There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order.However,assume that Mckerchie has no excess capacity and this special order would require 50 minutes of the constraining resource,which could be used instead to produce products with a total contribution margin of $6,900.What is the minimum price per unit on the special order below which the company should not go?
Definitions:
Indirect Materials
Materials used in the production process that are not directly traceable to the finished product, such as lubricants for machinery.
Fixed Period Cost
Describes expenses that do not fluctuate with the level of production or sales within a certain time frame, such as rent and salaries.
Annual Subscription
A payment model where customers pay a recurring fee once per year for access to a product or service.
Computer Magazine
A publication focusing on computers, technology trends, software and hardware reviews.
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