Question is #13

using numbers given above

Goes Inc. manufactures running shoes that it sells for $75 per pair. The US Olympic Track Team (OTT) wants a special order of 200 pairs of shoes for its athletes. Currently, Goes is producing and selling 800 pairs of shoes a year, and cost data for the current activity level is as follows: Total Direct Materials $12,000 Direct Labor $5,600 Variable Manufacturing Overhead $2,400 Fixed Manufacturing Overhead $8,000 Variable Selling, General & $4,000 Administrative Fixed Selling, General & $6,400 Administrative Total Costs (800 shoes) $38,400 The special order will not incur any incremental selling or administrative expenses. Fixed manufacturing costs will not change. Requirement 1: At an activity level of 800 shoes, what is Goes's unit product cost (e.g., manufacturing cost per pair of shoes produced?) $15 $25 O $32 Question 13 7.5 pts Requirement 2: Assume Goes has excess capacity to accept the special order (e.g. Goes has capacity of at least 1,000 shoes). What is the minimum price the OTT would need to pay for Goes to be indifferent about accepting the special order? $25 $43 $35 $22