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Question - Sireli Company makes and sells a product that regularly sell for $38.95 each. The following information is available for the current year:
Annual maximum capacity in units 6,500
Current annual production in units 6,200
Budgeted absorption cost per unit:
Direct materials $9.95
Direct labor $2.65
Manufacturing overhead (70% variable) $3.40
A new customer approached the company with a one-time all-or-nothing order for 900 units. The special-order units are identical to the regular ones, with one exception: the customer would like their business logo engraved on each unit. It will cost $2 to engrave the logo.
Required - Compute the minimum total sales revenue from the special order that would be acceptable to the company?
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complete home care: cleaning, lawn/garden service, minor maintenance bio-fuel conversion units for automobiles
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