Business, 16.12.2020 17:00 allyssaharrisooy50au

The Young Company has gathered the following information for a unit of its most popular product: Direct materials $ 12
Direct labor 6
Overhead (40% variable) 20
Cost to manufacture 38
Desired markup (50%) 19
Target selling price $ 57
The above cost information is based on 11,400 units. A distributor has offered to buy 3,100 units at a price of $39 per unit. The distributor claims this special order would not disturb regular sales at $57. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable?
A) 1,250 units.
B) 3,100 units.
C) 0 units.
D) 1,550 units.

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