AB Inc. currently produces a product with the following cost characteristics: Item Plant capacity Current product/sales...

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AB Inc. currently produces a product with the following cost characteristics: Item Plant capacity Current product/sales volume Selling price Variable costs - production Variable costs-selling and administrative Amount 42,250 units 36,750 units $86.50 36.00 17.50 A customer approaches AB Inc. for a special one-time order to purchase 9,000 units at a reduced price. No variable selling and administrative costs would be incurred on this special order. What is the minimum acceptable per-unit price for this order? Input your answer as a number with two decimai places (for example, 12.34). AB Inc. currently produces a product with the following cost characteristics: Item Plant capacity Current product/sales volume Selling price Variable costs - production Variable costs-selling and administrative Amount 42,250 units 36,750 units $86.50 36.00 17.50 A customer approaches AB Inc. for a special one-time order to purchase 9,000 units at a reduced price. No variable selling and administrative costs would be incurred on this special order. What is the minimum acceptable per-unit price for this order? Input your answer as a number with two decimai places (for example, 12.34).

Answer rating: 100% (QA)

To determine the minimum acceptable perunit price for the special order we need to consider the vari... View the full answer