CoursHeroTranscribedText: A company makes and sells T-shrits, which regularly sell for $108 each. The following...
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CoursHeroTranscribedText: A company makes and sells T-shrits, which regularly sell for $108 each. The following information is available for the current year. Annual maximum capacity in units 9,100 Current annual demand in units 8,700 Absorption product cost per unit (at the current production lavel): Direct materials $26 Direct labor $18 Manufacturing overhead (70% variable) $40 A new customer approached the company with a one-time all-or-nothing order for 1,200 T-shrits. The special-order T-shirts are identical to the regular ones, with one exception: the customer would like their business logo engraved into each T-shirt. It will cost $2 per unit to do this engraving. All fixed manufacutring overhead costs are unavoidable. The minimum selling price of the special order that would be acceptable to the the company is: $ per unit
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