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Business, 08.06.2020 12:57 ashcookie27

Northern Optical ordinarily sells the X-lens for $50. The variable production cost is $10, the fixed production cost is $18 per unit, and the variable selling cost is $1. A customer has requested a special order for 10,000 units of the X-lens to be imprinted with the customer’s logo. This special order would not involve any selling costs, but Northern Optical would have to purchase an imprinting machine for $60,000. What is the rock bottom minimum price below which Northern Optical should not go in its negotiations with the customer? *

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