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How much is the minimum selling price

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Question - Tenna Electronics sells arc monitors for $55 per unit. Unit product costs are as follows:Direct materials $14, Direct labor 20, Manufacturing overhead 3, Total $37. A special order to purchase 15,000 arc monitors was recently received from a customer. There is enough capacity to fill the order and filling this order would not disrupt current operations. Tenna will incur an additional $2 per arc monitor for additional labor costs due to a slight modification the buyer wants made to the original product. 25% of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. In negotiating a price, how much is the minimum selling price that Tenna Electronics should accept for this special order?

Reference no: EM132068116

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