Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: Zena Technology cost data Costs Direct materials Direct labor Manufacturing overhead Amounts $14 20 3 A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price per unit that Zena should accept for this special order?
Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: Zena Technology cost data Costs Direct materials Direct labor Manufacturing overhead Amounts $14 20 3 A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price per unit that Zena should accept for this special order?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:
**Zena Technology cost data**
| Costs | Amounts |
|---------------------------|---------|
| Direct materials | $14 |
| Direct labor | $20 |
| Manufacturing overhead | $3 |
A special order to purchase 15,000 arc printers has recently been received from another company, and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead cost is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price per unit that Zena should accept for this special order?
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