26) Cosy and Co. produces and sells vases for $100. The company has the capacity to produce 50,000 vases each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $ 45 Product level costs $ 15 Facility level costs $ 5 The company has received a special order for 500 vases. If this order is accepted, the company will have to spend $15,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order

Respuesta :

Answer:

$75 per unit

Explanation:

the unit level cost is equivalent to the variable cost = $45 per unit

product level costs and facility level costs are fixed costs

additional costs = $15,000 / 500 units = $30 per unit

Minimum selling price = $45 + $30 = $75 per unit

At this price, the company will be indifferent regarding whether to accept or reject the special order.