09 May WHAT SHOULD BE THE MINIMUM SELLING PRICE PER COMPUTER IN NEGOTIATING A PRICE FOR THE SPECIAL ORDER.
Brand X Computers makes and sells computers. Each computer sells for $400. The following cost data per computer are based on a full capacity of 10 000 computers each period:Direct materials $150Direct labor $100Variable manufacturing overhead $38Unavoidable fixed overhead $12Brand X is considering a special order for a sale of 2 500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $15 per computer. Brand X is currently selling 7 500 computers through its regular orders. What should be the minimum selling price per computer in negotiating a price for the special order.
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