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 |
Please show work. thank you Golden Industries manufactures a product with the following cost per unit...
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