Wilson Company is currently operating at a loss of $15,000. The sales manager has received...
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Accounting
Wilson Company is currently operating at a loss of $15,000. The sales manager has received a special order for 5,000 units of product, which normally sells for $35 per unit. Costs associated with the product are: direct material, \$6; direct labor, \$10; variable overhead, \$3; applied fixed overhead, \$4; and variable selling expenses, \$2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by $1.50 and selling expenses would be decreased by $1. If Wilson wants this special order to increase the total net income for the firm to $10,000, what sales price must be quoted for each of the 5,000 units
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