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  3. shelby industries has a capacity to produce 45,000

Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently...

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Accounting

image Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves don't require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum sales price per shelf that Shelby should require in order to avoid a loss from this special order? NOTE: Enter amounts rounded to two decimals (e.g., 108.80 or 90.00 )

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