3. Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: Direct materials $14 Direct labor 20 Manufacturing overhead 3 Total $37 A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. PLEASE NOTE: All dollar amounts, per unit and total, are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). When negotiating the price: What is the minimum selling price per unit that Zena should accept for this special order? per unit. If accepted, what are the total sales?
3. Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:
Direct materials $14
Direct labor 20
Manufacturing
Total $37
A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the
PLEASE NOTE: All dollar amounts, per unit and total, are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
When negotiating the price:
- What is the minimum selling price per unit that Zena should accept for this special order? per unit.
- If accepted, what are the total sales?
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