Golden Industries manufactures a product with the following cost per unit at the expected production...
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Accounting
Golden Industries manufactures a product with the following cost per unit at the expected production of 50000 units.
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| Direct materials | $8.54 |
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| Direct labour | 11.45 |
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| Variable manufacturing overhead | 3.06 |
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| Fixed manufacturing overhead | 6.57 |
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The company has the capacity to produce 60000 units. The product regularly sells for $35.94. A regular customer has requested Golden Industries to provide a quote for a special order of 7328 units.
If Golden would like the special order to make a contribution to operating income of $29736, what sales price per unit should be quoted to the customer for the special order?
Select one:
a. $40.00
b. $23.05
c. $35.94
d. $27.11
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