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Discuss half of the manufacturing overhead costs are fixed

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Reference no: EM131800444

Warner Company sells product Z for $21 per unit. Unit product costs are as follows:

Direct materials$4

Direct labor5

Manufacturing overhead10

Total$19

A special order to purchase 20,000 units was recently received. There is enough capacity to fill the order and filling this order would not disrupt current operations. Warner Company would incur an additional $3 per unit for shipping costs. Half of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced. In negotiating a price, the minimum acceptable selling price would be

Reference no: EM131800444

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