Lawrence Inc, manufactures industrial components. One of its products, which is used in the construction of...

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Lawrence Inc, manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D88. Data concerning this product re given below: Per Unit Selling price $170 Direct materials $32 Direct labor $15 Variable manufacturing overhead $9 Fixed manufacturing overhend $17 Variable selling expense $3 Fixed selling and administrative expense $19 The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. The company has received a special, one-time-only order for 600 units of component D88. There would be no variable selfing 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. Assuming that Decker has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order? O$67 $56 O $70 $82 Lawrence Inc, manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D88. Data concerning this product re given below: Per Unit Selling price $170 Direct materials $32 Direct labor $15 Variable manufacturing overhead $9 Fixed manufacturing overhend $17 Variable selling expense $3 Fixed selling and administrative expense $19 The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. The company has received a special, one-time-only order for 600 units of component D88. There would be no variable selfing 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. Assuming that Decker has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order? O$67 $56 O $70 $82

Answer rating: 100% (QA)

Minimum price Direct Materials 3200 Direct Labor 1... View the full answer