Pine Corp. has received a special order for 8,000 units of its product. The product normally sells for $45 and has the following manufacturing costs: Cost Type Direct Materials Direct Labor Per Unit Cost ($) $9 $8 Variable Manufacturing Overhead $5 Fixed Manufacturing Overhead Total Unit Cost $15 $37 Assume that Pine Corp. has sufficient capacity to fill the order. What price should Pine Corp. charge per unit to make an incremental profit of $20,000?

Pine Corp. has received a special order for 8,000 units of its product. The product normally sells for $45 and has the following manufacturing costs: Cost Type Direct Materials Direct Labor Per Unit Cost ($) $9 $8 Variable Manufacturing Overhead $5 Fixed Manufacturing Overhead Total Unit Cost $15 $37 Assume that Pine Corp. has sufficient capacity to fill the order. What price should Pine Corp. charge per unit to make an incremental profit of $20,000?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...

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