Grant Industries, a manufacturer of electronic parts, has recently received an invitation to bid on a special order for 20,500 units of one of its most popular products. Grant currently manufactures 41,000 units of this product in its Loveland, Ohio, plant. The plant is operating at 50% capacity. There will be no marketing costs on the special order. The sales manager of Grant wants to set the bid at $13 because she is sure that Grant will get the business at that price. Others on the executive committee of the firm object, saying that Grant would lose money on the special order at that price. Units 41,000 61,500 Manufacturing costs: Direct materials $ 123,000 $ 184,500 Direct labor 164,000 246,000 Factory overhead 328,000 430,500 Total manufacturing costs $ 615,000 $ 861,000 Unit cost $ 15 $ 14 Required 2. What is the relevant cost per unit
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Grant Industries, a manufacturer of electronic parts, has recently received an invitation to bid on...
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