Mohamad Co. sells product P at a price of SR 60 a unit. The per-unit...
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Accounting
Mohamad Co. sells product P at a price of SR 60 a unit. The per-unit cost data are: direct materials SR 19, direct labor SR 20, and overhead SR10 (20% fixed and 80% variable). Mohamad has sufficient capacity to accept a special order for 40,000 units just received. Selling costs associated with this order would be SR 7 per unit. The minimum selling price per unit should be:
a. SR 24. b. SR 30. c. SR 54. d. SR 36.
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