SOR-700 Inc. is a manufacturing company. It has received a special order for 6.000 units of its product TK-15. The normal selling price of one unit of TK-15 is $57 and its unit product cost is $20 as shown below: Direct materials $8.00 $2.00 Direct labor Manufacturing overhead $10.00 $20.00 Unit product cost The company's manufacturing overhead cost is mostly fixed. Only 30% of manufacturing overhead varies with the number of units of TK-15 produced. The special order will require customizing the TK-15s for an additional direct materials cost of $4 per unit a an additional direct labor cost of $3 per unit. If SOR-700 accepts the special order, the company will have to lease special equipment at a cost of $54,000 to do the customization. The company has sufficient excess capacity, and the special order would not affect the company's regular production and sales. What is the minimum (.e., the break-even) sales price that the company should charge per unit of the customized TK-15 for this special order? Multiple Choice $27 $36 $20 $29 O O

SOR-700 Inc. is a manufacturing company. It has received a special order for 6.000 units of its product TK-15. The normal selling price of one unit of TK-15 is $57 and its unit product cost is $20 as shown below: Direct materials $8.00 $2.00 Direct labor Manufacturing overhead $10.00 $20.00 Unit product cost The company's manufacturing overhead cost is mostly fixed. Only 30% of manufacturing overhead varies with the number of units of TK-15 produced. The special order will require customizing the TK-15s for an additional direct materials cost of $4 per unit a an additional direct labor cost of $3 per unit. If SOR-700 accepts the special order, the company will have to lease special equipment at a cost of $54,000 to do the customization. The company has sufficient excess capacity, and the special order would not affect the company's regular production and sales. What is the minimum (.e., the break-even) sales price that the company should charge per unit of the customized TK-15 for this special order? Multiple Choice $27 $36 $20 $29 O O

Name: SOR-700 Inc. is a manufacturing company. It has received a special or
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Description: SOR-700 Inc. is a manufacturing company. It has received a special order for 6,000 units of its product TK-15. The normal selling price of one unit of TK-15 is $57 and Its unit product cost is $20 as shown below:Direct materials$8.00$2.00Direct labo

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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