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Golden Industries manufactures a product with the following cost per unit at the expected production...

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Accounting

Golden Industries manufactures a product with the following cost per unit at the expected production of 50000 units.

Direct materials

$8.54

Direct labour

11.45

Variable manufacturing overhead

3.06

Fixed manufacturing overhead

6.57

The company has the capacity to produce 60000 units. The product regularly sells for $35.94. A regular customer has requested Golden Industries to provide a quote for a special order of 7328 units.

If Golden would like the special order to make a contribution to operating income of $29736, what sales price per unit should be quoted to the customer for the special order?

Select one:

a. $40.00

b. $23.05

c. $35.94

d. $27.11

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