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Time Remaining $3$ hours $57$ minutes $52$ seconds $03$:$57$:$52$

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Dwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended$-$stay hotels. Each desk sells for $$140($without chair$).$ The cost of each desk follows:

Materials $ $46$

Labor $51$

Variable overhead $6$

Fixed overhead $($$$240,000$ per month, $15,000$ units per month$)16$

Total costs per unit $ $119$

The local university is building a new dorm and asked Dwight for a special price of $$110$ for an order of $950$ desks. Dwight$$s can fill the order using existing capacity without affecting total fixed costs for the month. However, because the sale would be to a state agency, Dwight would have to file specified compliance documents with the state purchasing office. Dwight's manager estimates that the time and expenses incurred by this filing will amount to $$8,200$ and is independent of the number of desks ordered. Dwight$$s manager is unsure whether to accept this order and wants your advice.

Required:

Prepare a schedule to show the impact of providing the special order of $950$ desks on Dwight$$s profits in addition to the regular production and sales of $15,000$ desks per month.

Based solely on the data given, what is the lowest price per unit at which the desks could be sold to the university without reducing Dwight$$s profits?

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