Aspecial order has been received by landor for a sale of 25,000 fans to an overseas customer. the only selling costs that would be incurred on this order would be $4 per fan for shipping. landor is now selling 120,000 fans through regular channels each period. assume that direct labor is an avoidable cost in this decision. what should landor use as a minimum selling price per fan in negotiating a price for this special order?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.