What is the minimum acceptable selling price per unit

Reference no: EM13138444

Kandeed Co. sells product K for $30 per unit. Per unit costs of K are as follows:

Direct materials $6
Direct labor 7
Manufacturing overhead 12

Total $25

A special order to purchase 10,000 units was recently received. Kandeed has enough capacity to fill the order, and filling the order would not disrupt current production or sales of K. However, Kandeed 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 for the special order, what is the minimum acceptable selling price per unit?

Reference no: EM13138444

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