Determine the minimum price that gorski should charge

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Reference no: EM133188860

Question - Gorski Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65:

Direct materials $50

Direct labor 19

Variable manufacturing overhead 22

Fixed manufacturing overhead 15

Variable selling costs 11

The company received a special-order inquiry from an appliance manufacturer in Spain for 15,000 units of part no. 65. Only $3 of incremental fixed manufacturing overhead per unit will be incurred on the order, and the variable selling costs per unit will amount to $5. Since Gorski has excess capacity, determine the minimum price that Gorski should charge the Spanish manufacturer?

Reference no: EM133188860

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