Zena Technology sells arc computer printers for $54 per unit. Unit product costs are: Direct materials $13 Direct labor 20 Manufaturing overhead 6 Total $39 A special order to purchase 14,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $3 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. When negotiating the price, what is the minimum selling price that Zena should accept for this special order
Zena Technology sells arc computer printers for $54 per unit. Unit product costs are: Direct materials $13 Direct labor 20 Manufaturing overhead 6 Total $39 A special order to purchase 14,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $3 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. When negotiating the price, what is the minimum selling price that Zena should accept for this special order
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zena Technology sells arc computer printers for $54 per unit. Unit product costs are:
| Direct materials | $13 |
| Direct labor | 20 |
| Manufaturing |
6 |
| Total | $39 |
A special order to purchase 14,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $3 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the
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