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Forrest corporation manufactures parts that are used in the production of washers and dryers. the following costs are associated with part no. 65: direct materials $50 direct labor 19 variable manufacturing overhead 22 fixed manufacturing overhead 15 variable selling costs 11 the company received a special-order inquiry from an appliance manufacturer in brazil for 15,000 units of part no. 65. only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. since forrest has excess capacity, the minimum price that forrest should charge the brazil manufacturer is:

Answer :

anthougo

Since Forrest Corporation has excess capacity, the minimum price that Forrest should charge the brazil manufacturer is $99.

What is the minimum price?

The minimum price to charge the Brazilian manufacturer when excess capacity exists is determined by the variable costs incurred by Forrest Corporation and not the total costs.

Data and Calculations:

Direct materials $50

Direct labor = $19

Variable manufacturing overhead = $22

Variable selling costs = $5

Fixed cost per unit $3

Total variable costs per unit = $99

Thus, since Forrest Corporation has excess capacity, the minimum price that Forrest should charge the brazil manufacturer is $99.

Learn more about the minimum price to charge at https://brainly.com/question/25491204

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