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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
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Earth Company expects to operate at 80% of its productive capacity of 25,000 units per month. At this planned level, the company expects to use 40,000 standard.
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