A company has received a special order from a customer to make 5,000 units of acustomized product. The direct materials cost per unit of the customized product is$15, the direct labor cost per unit is $5, and the manufacturing overhead per unit is$18, including $6 of variable manufacturing overhead. If the company has sufficientavailable manufacturing capacity, what is the minimum price that can be accepted forthe special order?a. $24 c. $32b. $26 d. $38
A company has received a special order from a customer to make 5,000 units of acustomized product. The direct materials cost per unit of the customized product is$15, the direct labor cost per unit is $5, and the manufacturing overhead per unit is$18, including $6 of variable manufacturing overhead. If the company has sufficientavailable manufacturing capacity, what is the minimum price that can be accepted forthe special order?a. $24 c. $32b. $26 d. $38
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company has received a special order from a customer to make 5,000 units of a
customized product. The direct materials cost per unit of the customized product is
$15, the direct labor cost per unit is $5, and the manufacturing
$18, including $6 of variable manufacturing overhead. If the company has sufficient
available manufacturing capacity, what is the minimum price that can be accepted for
the special order?
a. $24 c. $32
b. $26 d. $38
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