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Maytag manufactures washing machines. The cost associated for washer model 100 are: direct material 50, direct labor 19, variable mfg overhead 22, fixed mfg overhead 15. Maytag receives a special order to build 15000 unit of washer model 100 but with modifications. It estimates 3 of additional fixed mfg overhead costs will be incurred on the special order for production equipment depreciation and 5 per washer on product design costs. The existing fixed mfg overhead costs are all deemed unavoidable. Assuming the factory has excess capacity and want to Atleast break even what is the minimum acceptable price it should ch

Maytag manufactures washing machines. The cost associated for washer model 100 are: direct material 50, direct labor 19, variable mfg overhead 22, fixed mfg overhead 15. Maytag receives a special order to build 15000 unit of washer model 100 but with modifications. It estimates 3 of additional fixed mfg overhead costs will be incurred on the special order for production equipment depreciation and 5 per washer on product design costs. The existing fixed mfg overhead costs are all deemed unavoidable. Assuming the factory has excess capacity and want to Atleast break even what is the minimum acceptable price it should ch

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Maytag manufactures washing machines. The cost associated for washer model 100 are: direct material 50, direct labor 19, variable mfg overhead 22, fixed mfg overhead 15. Maytag receives a special order to build 15000 unit of washer model 100 but with modifications. It estimates 3 of additional fixed mfg overhead costs will be incurred on the special order for production equipment depreciation and 5 per washer on product design costs. The existing fixed mfg overhead costs are all deemed unavoidable. Assuming the factory has excess capacity and want to Atleast break even what is the minimum acceptable price it should charge per washer on the order ?    

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