ct labor 2 Overhead (80% fixed) 7 Total $10 Beach Blanket Bonanza Corporation received a special order for 1,000 units of the beach towel. The only additional cost to Beach Blanket Bonanza would be foreign import taxes of $1 per unit. If Beach Blanket Bonanza is able to sell all of the current production domestically, what would be the minimum sales price that Beach Blanket Bonanza w

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Beach Blanket Bonanza Corporation sells its popular mid-century beach towel for $18 per unit, and the standard cost card for the product shows the following costs:

Direct material
$1
Direct labor
2
Overhead (80% fixed)
7
Total
$10

Beach Blanket Bonanza Corporation received a special order for 1,000 units of the beach towel. The only additional cost to Beach Blanket Bonanza would be foreign import taxes of $1 per unit. If Beach Blanket Bonanza is able to sell all of the current production domestically, what would be the minimum sales price that Beach Blanket Bonanza would consider for this special order?

Group of answer choices
$11.00
$19.00
$5.40
$18.00
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