Cedar Industries manufactures compressors used in air conditioners. At its budgeted annual production level of 4,000...

 

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Cedar Industries manufactures compressors used in air conditioners. At its budgeted annual production level of 4,000 units, Cedar's per-unit manufacturing costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $38 $1 $8 $16 A customer has offered to buy 500 units at a reduced price. There would be no variable selling and administrative expenses related to this special order and the special order would not impact Cedar's fixed costs. However, Cedar has no excess capacity and this special order would require 30 hours of machine time, which could be used instead to produce products with a total contribution margin of $10,000. What is the minimum per-unit selling price that Cedar must charge to break even on the special order? Round to the nearest whole dollar and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00). Cedar Industries manufactures compressors used in air conditioners. At its budgeted annual production level of 4,000 units, Cedar's per-unit manufacturing costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $38 $1 $8 $16 A customer has offered to buy 500 units at a reduced price. There would be no variable selling and administrative expenses related to this special order and the special order would not impact Cedar's fixed costs. However, Cedar has no excess capacity and this special order would require 30 hours of machine time, which could be used instead to produce products with a total contribution margin of $10,000. What is the minimum per-unit selling price that Cedar must charge to break even on the special order? Round to the nearest whole dollar and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

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