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Determine the minimum acceptable price for the job

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Reference no: EM132055637

Question - Clay Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:

Fixed costs: 21,000

Variable costs: 33,000

The fixed costs include a normal $3,700 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

Reference no: EM132055637

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