What is the price that Kipas should set for special order

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Question - Kipas Sdn Bhd produces ceiling fans, and is currently operating at 95% of its capacity of 100,000 fans per month. The company has just received a one-time special order from Hong Kong Trading to purchase 5,000 fans at RM110 per unit. If Kipas choose to accept this order, it has to incur an additional fixed printing cost of RM50,000 for the packaging material. The data provided is as follows:

Monthly Data

Units produced and sold 95,000

Normal selling price/unit RM150

Variable cost/unit RM80

Total fixed cost RM3,500,000

Will your answer change if Hong Kong Trading want to purchase 9,000 units instead of 5,000 units? What is the price that Kipas should set for this special order? Support your answer with appropriate calculation.

Reference no: EM132837325

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