Calculate the minimum price per unit the company should accept.

Zolla Manufacturing has an excess capacity of 500 units in its manufacturing facility. Its product costs $1,000 per unit in variable costs, plus $450 in allocated fixed manufacturing overhead. Another firm wishes to purchase 400 units from Zolla that it will repackage and sell under a different brand name; this would be a one-time-only special order. To fill the order, Zolla would need to retool its machinery to remove the Zolla logo, which would cost $6,400. Calculate the minimum price per unit the company should accept.

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Reference no: EM132069492

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