Minimum relevant cost per television in negotiating price

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Reference no: EM131215935

ABC Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per television are based on a full capacity of 12,000 televisions produced each period: A special order has been received by ABC for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. ABC is now selling 7,200 televisions through regular distributors each period.

What should be the minimum relevant cost per television in negotiating a price for this special order?

Reference no: EM131215935

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