Question: The Clear Music Company produces and sells a desktop speaker for $270. The company has the capacity to produce 67,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $130 Product level costs $32 Facility level costs $22 The company has received a special order for 18,000 speakers. If this order is accepted, the company will have to spend $27,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? (Do not round intermediate calculations. Round final answer to two decimal places)
Question: The Clear Music Company produces and sells a desktop speaker for $270. The company has the capacity to produce 67,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $130 Product level costs $32 Facility level costs $22 The company has received a special order for 18,000 speakers. If this order is accepted, the company will have to spend $27,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? (Do not round intermediate calculations. Round final answer to two decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
The Clear Music Company produces and sells a
desktop speaker for $270.
The company has the capacity to produce 67,000
speakers each period.
At capacity, the costs assigned to each unit are as
follows:
Unit level costs
$130
Product level costs $32
Facility level costs $22
The company has received a special order for
18,000 speakers.
If this order is accepted, the company will have to
spend $27,000 on additional costs.
Assuming that no sales to regular customers will
be lost if the order is accepted, at what selling price
will the company be indifferent between accepting
and rejecting the special order? (Do not round
intermediate calculations. Round final answer to
two decimal places)
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