Sells 11,000 umbrellas per year, selling 82,000 at 7.00 each. Fresh has approached about buying 13,000 umbrellas for 6.00 each. Would save .70 per umbrella. compared to normal production cost. Umbrellas have a variable unit cost of 3.70. with fixed costs of 25,000. Because of the large order, the unit variable cost will drop from 3.70 to 3.00 per umbrella. 

What is the minimum sales price per umbrella that they should require in order to avoid a loss from this special order?

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To determine the minimum sales price per umbrella that Fresh should require in order to avoid a loss ... View the full answer