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QUESTION

Per Unit Costs: Direct Material: $6 Direct Labor: $4 Variable Overhead: $2 Variable Selling: $4 Fixed Overhead: $300 Fixed Selling: $400 There is a...

Per Unit Costs:

Direct Material: $6

Direct Labor: $4

Variable Overhead: $2

Variable Selling: $4

Fixed Overhead: $300

Fixed Selling: $400

There is a special order for 100 units. To produce the special order, the manufacturer must purchase a special machine for $300.

Labor costs will increase by $0.25 per unit for this special order.

To earn $300 on this special order. what price must be charged? Please included steps.

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