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What is the minimum price that can be accepted

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Question - Arden Corporation just received a special order to make 7,500 units of a specialized calculator. Direct materials cost per unit of the custom calculator is $15, the direct labor cost per unit is $5, and the manufacturing overhead per unit is $18, including $6 of variable manufacturing overhead. If Arden has sufficient manufacturing capacity, what is the minimum price that can be accepted for the custom calculator?

a. $24

b. $26

c. $32

d. $38

Reference no: EM131809315

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