Zena Technology sells arc computer printers for $60 per unit.Unit product costs are:Zena Technology cost dataCostsDirect materialsDirect laborManufacturing overheadAmounts$12224A special order to purchase 14,519 arc printers has recentlybeen received from another company and Zena has idlecapacity to fill the order. Zena will incur an additional $4 perprinter for additional labor costs due to a slight modificationthe buyer wants made to the original product. One-third ofthe manufacturing overhead costs is fixed and will beincurred no matter how many units are produced.When negotiating the price, what is the minimum sellingprice per unit that Zena should accept for this special order?Round to the nearest penny, two decimal places.

Minimum selling price is the price below which the item should not be sold to avoid loss .Minimum…

Answered: Technology sells arc computer printers…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: Zena Technology cost data Costs Direct materials Direct labor Manufacturing overhead Amounts $14 20 3 A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price per unit that Zena should accept for this special order?
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Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: Direct material:14 Direct labor:20 Manufacturing overhead:3 Total:37 A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $3 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?

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