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What is the minimum selling price per unit

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Reference no: EM132050907

Question - Wagner Company sells product A at a selling price of P21 per unit. Wagner's costs per unit on the full capacity of 200,000 units are as follows:

Direct Materials P4

Direct Labor P5

Overhead ( 2/3 of which is fixed) 6

Total P15

A special order offering to buy 20,000 units was received from a foreign distributor. The only selling costs that would be incurred on this order would be P3 per unit for shipping. Wagner has sufficient existing capacity to manufacture the additional units. What is the minimum selling price per unit that Wagner should be considered?

Reference no: EM132050907

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