CHAPTER 6 RELEVANT INFORMATION AND DECISION MAKING: PRODUCTION DECISIONS TRUE / FALSE: Opportunity costs need to be considered when deciding on the...

      A special order offering to buy 40,000 units has been received from a foreign distributor. The only selling costs that would be incurred on this order would be $6 per unit for shipping. The company has sufficient idle capacity to manufacture the additional units. Two-thirds of the manufacturing overhead is fixed and would not be affected by this order. Assume that direct labor is an avoidable cost in this decision. In negotiating a price for the special order, what is the minimum acceptable selling price per unit?