Acme Company manufactures widgets. A major foreign distribut…
Acme Company manufactures widgets. A major foreign distributor has offered to buy an unusually large quantity (1,750 units) at a reduced price. If Acme accepts the special order, it will incur additional one-time legal costs in connection that increase the minimum per-unit selling price that Acme must charge to break even on the order by $32 per unit. At the last minute, the customer decides to reduce the special order to 1,400 units. This change has no effect on the total amount of one-time legal costs, but it does increase the minimum per-unit selling price that Acme must charge to break even on a special order to $729 per unit. What are Acme’s per-unit variable manufacturing costs?