Lopez Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs Direct material $1 Direct labor 2 Overhead (80% fixed) 7 Total $10   Refer to Lopez Corporation. Lopez received a special order for 1,000 units of the product. The only additional cost to Lopez would be foreign import taxes of $1 per unit. If Lopez is able to sell all of the current production domestically, what would be the minimum sales price that Lopez would consider for this special order? Select one: a. $19.00 b. $11.00 c. $5.40

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Lopez Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs

Direct material $1
Direct labor 2
Overhead (80% fixed) 7
Total $10

 

Refer to Lopez Corporation. Lopez received a special order for 1,000 units of the product. The only additional cost to Lopez would be foreign import taxes of $1 per unit. If Lopez is able to sell all of the current production domestically, what would be the minimum sales price that Lopez would consider for this special order?

Select one:
a. $19.00
b. $11.00
c. $5.40
d. $18.00
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