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Concordia University - COMM 305 Winslow Industries makes large waste storage bins and sells them for $150 each

Accounting

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Concordia University - COMM 305

Winslow Industries makes large waste storage bins and sells them for $150 each. The manufacturing cost of each bin is as follows:

Direct material                                                  $50

Direct labour                                                      $40

Manufacturing overhead                             $20

The manufacturing overhead is 80% variable and 20% fixed. The company receives an order for 1,000 bins which will cost an additional $10 in shipping costs per bin. The company has sufficient excess capacity to produce the order.

Calculate the minimum price that Winslow should charge for each bin.