AB Inc. currently produces a product with the following cost characteristics: ...
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Accounting
AB Inc. currently produces a product with the following cost characteristics:
| Selling price | $94 |
| Variable costs production | 32 |
| Variable costs S&A | 15 |
| Total fixed costs | $975978 |
|
| |
| Plant capacity | 41755 |
| Current product/sales volume | 35759 |
A customer approaches AB Inc. for a special one-time order to purchase 9729 units at a reduced price. No variable selling and administrative costs would be incurred on this special order.
What is the minimum acceptable per unit price for this order?
Select one:
a. $32.00
b. $79.00
c. $50.03
d. $65.03
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