Zena Technology sells arc computer printers for $54 per unit. Unit product costs are:
Direct materials $15
Direct labor 19
Manufacturing overhead 6
Total $40
A special order to purchase 11,000 arc printers has recently been received from another company and Zena has the 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 to be made to the original product. One-third of the manufacturing overhead costs are 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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