Business, 02.07.2021 18:00 stacy021603

XYZ Corporation makes and sells fans. Each fan regularly sells for $42. The following cost data per fan is based on a full capacity of 150,000 fans produced each period. Direct materials $ 8 Direct labor $ 9 Manufacturing overhead (70% variable and 30% unavoidable fixed) $ 10 A special order has been received by XYZ for a sale of 25,000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. XYZ is now selling 120,000 fans through regular channels each period. Assume that direct labor is an avoidable cost in this decision. What should XYZ use as a minimum selling price per fan in negotiating a price for this special order

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XYZ Corporation makes and sells fans. Each fan regularly sells for $42. The following cost data per...

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