The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 26, Problem 4CT
Summary Introduction

Case summary: The government takes private property by eminent domain for public use. The government may take the property and convey the land to create jobs and increase tax revenues. The power of eminent domain is to boost economic development. States have the right to prohibit takings by the government.

To find: The point at which the predicted benefits of a new private commercial endeavor outweigh the constitutional requirement of taking only for public use.

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I am trying to find the accurate solution to this general accounting problem with the correct explanation.
Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $34. The following cost data per fan is based on a full capacity of 157,000 fans produced each period. Direct materials $ 9 Direct labor $ 9 Manufacturing overhead (80% variable and 20% unavoidable fixed) $ 10 A special order has been received by Landor for a sale of 20,000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $3 per fan for shipping. Landor is now selling 137,000 fans through regular channels each period. Assume that direct labor is an avoidable cost in this decision. What should Landor use as a minimum selling price per fan in negotiating a price for this special order?
Please provide the correct answer to this general accounting problem using accurate calculations.
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