Solution-Compute what the minimum acceptable price is

Compute what the minimum acceptable price is

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Reference no: EM132709867

Peter Senen Company is a manufacturer of electronic switches. One of their products, " Petesy Switch" is used as a component of most electrical appliances.

Petesy Switch has the following financial data per unit.

Selling price P180

Variable costs:

Materials P 24

Labor 18

Factory Overhead 15

Shipping and handling 3 P60

Fixed costs:

Factory overhead P 36

Selling and admin 14 50

Total P110

Problem 1: During the month, Peter Senen Company received a special, one time order for 1,500 units of Petesy Switch.
Assume that Peter Senen Company is operating full capacity and that it does not want to incur a loss from this order, the minimum acceptable price is

a. P60

b. P180

c. 50

d. P110

Reference no: EM132709867

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Compute what the minimum acceptable price is

Reference no: EM132709867

Reference no: EM132709867

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