Solution-What should be the minimum selling price per

What should be the minimum selling price per television

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Question - Farnsworth Television makes and sells portable television sets. Each television regularly sells for $370. The following cost data per television are based on a full capacity of 20,500 televisions produced each period:

Direct materials $70

Direct labor $55

Manufacturing overhead (75% variable, 25% unavoidable fixed) $40

A special order has been received by Farnsworth for a sale of 3,600 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $15 per television for shipping. Farnsworth is now selling 8,600 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order?

$170

$155

$370

$165

Reference no: EM132075943

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What should be the minimum selling price per television

Reference no: EM132075943

Reference no: EM132075943

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