Zena Technology sells arc computer printers for $55 per unit. Unit costs are: Direct Materials $14 Direct labor 20 Manufacturing Overhead 3 Total $37 A separate order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 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. a. 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 $55 per unit. Unit costs are:
Direct Materials $14
Direct labor 20
Manufacturing
Total $37
A separate order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the
a. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?
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