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Question - Brand X Computers makes and sells computers. Each computer sells for $400. The following cost data per computer are based on a full capacity of 10,000 computers each period:

Direct materials $150

Direct labor $100

Variable manufacturing overhead $38

Unavoidable fixed overhead $12

Brand X is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $15 per computer. Brand X is currently selling 7,500 computers through its regular orders. What should be the minimum selling price per computer in negotiating a price for the special order?

Accounting Basics, Accounting

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