Lasting Products Ltd. produces a single product. The following is a summary of the cost to...

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Lasting Products Ltd. produces a single product. The following is a summary of the cost to produce and sell one unit: Cost per unit Direct materials Direct labour Variable overhead Variable selling expenses Fixed overhead Total cost $ 35.00 25.00 17.50 7.25 2.00 $ 86.75 The fixed overhead cost of $2 per unit is based on the expected annual production of 125,000 units. If more than 125,000 units are produced, Lasting will incur an additional $215,000 of fixed overhead costs. Fixed selling and administrative expense is $150,000, regardless of the number of units sold. Lasting expects to sell 122,000 units in the coming year. Lasting has been invited to bid on a contract to supply a special order of 10,000 units. Lasting expects to incur only $2.50 per unit in variable selling expenses to fill the special order; all other variable costs will remain unchanged. The 10,000 units will be added to Lasting's regular production schedule. What is the acceptable minimum price that Lasting should bid? Lasting Products Ltd. produces a single product. The following is a summary of the cost to produce and sell one unit: Cost per unit Direct materials Direct labour Variable overhead Variable selling expenses Fixed overhead Total cost $ 35.00 25.00 17.50 7.25 2.00 $ 86.75 The fixed overhead cost of $2 per unit is based on the expected annual production of 125,000 units. If more than 125,000 units are produced, Lasting will incur an additional $215,000 of fixed overhead costs. Fixed selling and administrative expense is $150,000, regardless of the number of units sold. Lasting expects to sell 122,000 units in the coming year. Lasting has been invited to bid on a contract to supply a special order of 10,000 units. Lasting expects to incur only $2.50 per unit in variable selling expenses to fill the special order; all other variable costs will remain unchanged. The 10,000 units will be added to Lasting's regular production schedule. What is the acceptable minimum price that Lasting should bid?

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