Leone Corporation sells a product for $21 per unit, and the standard cost card for the product shows the following costs Direct material $2 Direct labor 3 Overhead (70% fixed) 10 Total $15 Refer to Leone Corporation. Leone received a special order for 1,200 units of the product. The only additional cost to Leone would be foreign import taxes of $2 per unit. If Leone is able to sell all of the current production domestically, what would be the minimum sales price that Leone would consider for this special order

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Answer:

the  minimum sales price that Leone would consider for this special order is $23 per unit

Explanation:

The computation of the minimum sales price that Leone would consider for this special order is shown below;

= Selling price per unit + direct material per unit

= $21 per unit + 2 per unit

= $23 per unit

Hence, the  minimum sales price that Leone would consider for this special order is $23 per unit