The company has received a special, one-time-only order for 300 units of component D53. There would be no variable selling 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. However, assume that Dockwiller has no excess capacity and this special order would require 30 minutes of the constraining resource, which could be used instead to produce products with a total contribution  margin of $1,800. What is the minimum price per unit on the special order below  which the company should not go?

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Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Selling price $1.50 $ 26 $ 3 $ 1 $ 17 $ 2 $ 18 Direct materlals Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling and administrative expense The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Selling price $1.50 $ 26 $ 3 $ 1 $ 17 $ 2 $ 18 Direct materlals Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling and administrative expense The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost.

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