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Crane Company incurred the following costs for 50000 units: Variable costs $300000 Fixed costs 392000 Crane has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4000 for shipping. If Crane wants to break even on the order, what should the unit sales price be?

Respuesta :

Zviko

Answer:

see explanation

Explanation:

Use the Fixed Costs, Variable costs and Sales arising from the special order only and follow the steps below :

Step 1 : Determine the Break even level in sales revenue

Break even (sales revenue) = Fixed Costs ÷ Contribution margin ratio

Step 2 : Determine the unit selling price

Unit selling price = Break even (sales revenue) ÷ total units sold          

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