The company has been approached by a customer with a request for a 100-unit spec

Question

The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

Any amount over $34 per unit. Any amount over $20 per unit. Any amount over $14 per unit. Any amount over $9 per unit. Any amount over $5 per unit. A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this production is shown in the table below: The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

Explanation / Answer

Any amount over $9 per unit.

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