Violet has received a special order for 170 units of its product. The product normally...
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Accounting
Violet has received a special order for 170 units of its product. The product normally sells for $2,900 and has the following manufacturing costs:
| Per unit | |||
| Direct materials | $ | 690 | |
| Direct labor | 320 | ||
| Variable manufacturing overhead | 440 | ||
| Fixed manufacturing overhead | 1,210 | ||
| Unit cost | $ | 2,660 | |
Assume that Violet has sufficient capacity to fill the order without harming normal production and sales. What minimum price should Violet charge to achieve a $20,400 incremental profit?
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