19th Edition

ISBN: 9781947172609

Author: OpenStax

Publisher: OpenStax College

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Chapter 10, Problem 4EA

Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:

Chapter 10, Problem 4EA, Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special

A special 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. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?

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Chapter 10, Problem 3EA

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