?Pontotoc Industries manufactures a product that is used as a subcomponent by other manufacturers. It has the following price and cost structure:
Selling price |
|
$300 |
---|
Costs |
|
|
Direct materials |
$40 |
|
Direct labor |
30 |
|
Variable manufacturing overhead |
24 |
|
Fixed manufacturing overhead |
60 |
|
Variable selling |
6 |
|
Fixed selling and administrative |
20 |
(180) |
Operating margin |
|
$120 |
Pontotoc received a special, one-time order for 1,000 of the above parts. Assuming Pontotoc has excess capacity, the minimum unit price for this special, one-time order is in excess of