Part 5 (15 minutes)
The following data relate to a year's budgeted activity for Bassam Corporation, a single product company:
Beginning inventory
Add: Production
Available
Less: Sales
= Ending inventory
UNITS
30,000
120,000
150,000
110,000
40.000
Selling price
Variable manufacturing costs
Variable marketing costs
Fixed manufacturing costs (based on
100,000 units)
Fixed manufacturing costs (based on
100.000 units)
Per Unit
$ 5.00
$ 1.00
$ 2.00
$ 0.25
$ 0.65
Total fixed costs remain unchanged within a range of 25,000 units to total capacity of 160,000 units.
A special order is received to purchase 10,000 units to be used in an unrelated market.
The sale would require production of 10,000 extra units.
Required:
What price per unit should be charged on the special order to increase operating profit by $9,000?
The following data relate to a year's budgeted activity for Bassam Corporation, a single product company: Total fixed costs remain unchanged within a range of 25,000 units to total capacity of A special order is received to purchase 10,000 units to be used in an unrelated market. 160,000 units. The sale would require production of 10,000 extra units. Required: What price per unit should be charged on the special order to increase operating profit by $9,000 
