Teledine makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period.
Direct materials $80
Direct labor 60
Factory overhead (70% variable
and 30% unavoidable fixed) 40
A special order has been received by Teledine for a sale of 2,000 televisions to an overseas customer. Teledine is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price (no profit) per television in negotiating a price for this special order?
a. $174.
b. $168.
c. $210.
d. $180.
