Billy company has just received a special one-time order


Question - Billy Company has just received a special, one-time order for 1,000 units. Producing the order will have no effect on the production and sales of other units. The buyer's name will be stamped on each unit, at a cost of $2,000. Normal cost data, excluding stamping, follows:

Direct materials $10 per unit

Direct labor 16 per unit

Variable overhead 4 per unit

Allocated fixed overhead 12 per unit

Allocated fixed selling expense 8 per unit

What selling price per unit will this company require to earn $3,000 on the order?

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Accounting Basics: Billy company has just received a special one-time order
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