A company is currently operating at 65% capacity producing 12,000 units. Cost information relating to this current production is shown in the following table:
The company has been approached by a customer with a request for a special order for 2,000 units. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

Question

A company is currently operating at 65% capacity producing 12,000 units. Cost information relating to this current production is shown in the following table:
  The company has been approached by a customer with a request for a special order for 2,000 units. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

Quizplus · Accepted Answer

The Answer of A company is currently operating at 65% capacity producing 12,000 units. Cost information relating to this current production is shown in the following table:
  The company has been approached by a customer with a request for a special order for 2,000 units. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

A Company Is Currently Operating at 65% Capacity Producing 12,000