Business, 13.05.2021 20:20 keke515

Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $23 per unit. Minor currently produces and sells 7,500 units at $24.00 each. This level represents 75% of its capacity. Production costs for these units are $31.50 per unit, which includes $21.00 variable cost and $10.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $925 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,975 on the special order, the size of the order would need to be:

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Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $23 per uni...

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