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Golden Industries manufactures a product with the following cost per unit at the expected production of 50000 units. $8.66 11

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Answer:

Option b) is correct.$28.45

Relevant cost per unit for special order = Direct material + Direct labor + Variable manufacturing overhead
= $8.66 + $11.17 + $4.99 = $24.82
Total cost from special order = 5752 * $24.82 = $142,764.64
Target contribution to operating income from special order = $20,858
Sale price per unit to be quoted to the customer = (Relevant cost from special order + Target income) / Nos of units in special order
($142,764.64 + $20,858) / 5752 = $28.45 per unit
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