Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below:

Sales price per unit- $30

Costs per unit:

Direct material- 7

Direct labor- 4

Overhead (50% variable)- 6

Selling costs (40% variable)- 10

Production in units- 10,000

Sales in units- 9,500

Refer to Henderson Electronics Corporation. Assume that the remaining Model A1 radios can be sold through normal channels or to a foreign buyer for $6 per unit. If sold through regular channels, the minimum acceptable price will be

Answer rating: 100% (QA)

The minimum acceptable price if the remaining Model A1 radios are sold through regular ... View the full answer