Solution-What minimum price if galaxy accept the special

What minimum price if galaxy accept the special order is

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Reference no: EM132715605

Galaxy Industries currently manufactures 15,000 components per year and sell these components in the open market $45 per unit. The manufacturing costs of the component were determined to be as follows:

Units produced 15,000 units

Direct materials $150,000
Direct labor $240,000
Variable manufacturing overhead $90,000
Fixed manufacturing overhead $120,000

Note: Fixed manufacturing overhead are unavoidable.

Problem 1: If Galaxy's is currently producing 20,000 components (at full capacity), the minimum price/unit if Galaxy accept the special order is _____________

A. $30/unit

B. $32/unit

C. $40/unit

D. $45/unit

Reference no: EM132715605

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What minimum price if galaxy accept the special order is

Reference no: EM132715605

Reference no: EM132715605

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