Augusta Inc, expects manufacturing and sales of 70,000 units of product Maggie, its only product, to occur evenly over a 10-week period. Augusta pays for materials in the week following use. The balance of accounts payable for materials at the beggining of the 10-week period is $40,000. There are no beggining inventories. The following information pertains to product Maggie for the 10-week period.
Sales price $11 per unit Manufacturing conversion cost-Fixed $210,000 Materials $3 per unit Variable $2 per unit Selling and administrative costs-Fixed $45,000 Variable $1 per unit
A special order for 4,000 units would cause a loss of regular sales. All cost relationships are unchanged. If the special order is accepted, what minimum amount of revenue must be generated from the special order so that net income is not reduced?