PAGE 5 Problem 3 Verona Technology sells computer printers for $55 per unit. Unit product...
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PAGE 5 Problem 3 Verona Technology sells computer printers for $55 per unit. Unit product costs are: $14 Direct materials Direct labor Manufacturing overhead Total 20 3 $37 A special order to purchase 15,000 printers has recently been received from another company and Verona has idle capacity to fill the order. Verona will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced A. When negotiating the price, what is the minimum selling price that Verona should accept for this special order? Show and label your work. B. Assume the same facts except that Verona is operating at capacity. If Verona accepts the special order, what is the opportunity cost in accepting the special order? Show and label your work
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