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What is the minimum selling price for this order

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Reference no: EM132999621

Question - Allstate corporation shows the standard absorptive manufacturing cost for a product, on a production of 400,000 units

Direct Materials - $11

Direct Labor - $5

Variable Overhead - $3

Fixed Overhead - $2

$21

The company sells a unit for $42 and received a special order for 10,000 units. Idle capacity exists. Incremental distribution costs for the order will be $1 a unit. What is the minimum selling price for this order?

Reference no: EM132999621

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