Homestead Jeans Co. has an annual plant capacity of 64,000 units, and current production is 43,900 units. Monthly fixed costs are $39,300, and variable costs are $25 per unit. The present selling price is $32 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 15,200 units of the product at $26 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.
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Homestead Jeans Co. has an annual plant capacity of 64,000 units, and current production is 43,900 u...
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