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:

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