A company receives an offer to purchase a special order of units of a product...
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Accounting
A company receives an offer to purchase a special order of units of a product that normally sells for $10 each to regular customers. The cost of manufacturing the units is shown here. If all other conditions are favorable, what is the absolute lowest price that the company would be able to feasibly accept for the order if it has enough idle capacity to handle the order?
Cost per unit
Direct materials
$2
Direct labor
$1
Avoidable fixed costs
$2
Unavoidable fixed costs
$3
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