Answered
The company has received a special, one-time-only order for 500 units of component P06.There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order.However, assume that Younes has no excess capacity and this special order would require 30 minutes of the constraining resource, which could be used instead to produce products with a total contribution margin of $10,000.What is the minimum price per unit below which the company should not accept the special order?
A) $67 per unit
B) $103 per unit
C) $20 per unit
D) $83 per unit
On Aug 02, 2024