Reference no: EM132529401

Question 1: If a company with excess capacity and the following per unit costs received a special order for 15,900 units on which the variable selling costs per unit will only be $13, the minimum price per unit the company should charge for the special order is:

Direct Material -$59

Direct Labor - $28

Variable Manufacturing Overhead - $31

Fixed Manufacturing Overhead - $12

Variable Selling Costs - $16

Option 1: $118.

Option 2: $131.

Option 3: $144.

Option 4: $143.

Option 5: None of the answers is correct.