Cypress would have to produce the special order on an overtime shift, which would increase the direct labor costs to $300 per unit. The special order would not impact Cypress' fixed costs. However, if Cypress accepts the special order, it will also incur $60,000 in additional, one-time costs in connection with the order. What is the minimum per-unit selling price that Cypress must charge to break even on the special order? Round to the nearest whole dollar and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
Cypress would have to produce the special order on an overtime shift, which would increase the direct labor costs to $300 per unit. The special order would not impact Cypress' fixed costs. However, if Cypress accepts the special order, it will also incur $60,000 in additional, one-time costs in connection with the order. What is the minimum per-unit selling price that Cypress must charge to break even on the special order? Round to the nearest whole dollar and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...
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