The only selling costs that would be incurred on this order

Reference no: EM13612951

Landor Appliance Company makes and sells electric fans. Each fan regularly sells for $42. The following cost data per fan is based on a full capacity of 150,000 fans produced each period. Direct materials............................................................... $8 Direct labor..................................................................... $9 Manufacturing overhead (70% variable and 30% unavoidable fixed)................ $10 A special order has been received by Landor for a sale of 25,000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. Landor is now selling 120,000 fans through regular channels each period. What should Landor use as a minimum selling price per fan in negotiating a price for this special order?

Reference no: EM13612951

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