Using an Internet web browser, search for AICPA’s Statement on Standards for Attestation Engagements (SSAE) No. 18, and perform the following: a. Explain the relevance of SSAE 18 and what….
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.