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Question - Sam Company has just received a special, one-time order for 1,000 units. Producing the order will have no effect on the production and sales of other units. The buyer's name will be stamped on each unit, at a cost of $2,000. Normal cost data, excluding stamping, follows:
Direct materials $10 per unit
Direct labor 16 per unit
Variable overhead 4 per unit
Allocated fixed overhead 12 per unit
Allocated fixed selling expense 8 per unit
What selling price per unit will this company require to earn $3,000 on the order?
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