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Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently...

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Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,300 shelves for a new project and is willing to pay $24 each. The shelves can be packaged in bulk; this saves Shelby $1.40 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $25 with fixed costs of $350,000. Because the shelves don't require packaging, the unit variable costs for the special order will drop from $25 per shelf to $23.60 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order? X per shelf Feedback

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