Price per Unit for Special Order
1,000 units. Producing the order will have no effect on production and sales of
other units. They buyer’s name will be stamped on each unit, at a costs of
$2,000. Normal cost data, excluding stamping, as follows:
Direct materials…………………………$10 per unit
Direct labor……………………………….16 per unit
Variable overhead………………………12 per unit
Allocated fixed overhead………………12 per unit
Allocated fixed selling expense……….8 per unit
What selling price per unit will this business require to
earn $3,000 on the order?
Explain and show calculations of what selling price per unit
will this company require to earn $3,000 on the order.
ScholarMatic: Explanation & Answer
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