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0 Posy Corp. makes and sells a product that normally sells for $48. Because of a defective machine, 1,000 units were not produced correctly and
0 Posy Corp. makes and sells a product that normally sells for $48. Because of a defective machine, 1,000 units were not produced correctly and remain in inventory. Each of the defective unit has the following costs assigned to it by the company's absorption costing system: Direct materials Direct labor Variable Overhead Fixed Overhead $5.00 per unit $3.00 per unit $2.25 per unit $0.75 per unit The company has two options regarding the defective units: (1) be sold for $8 per unit, or (2) repaired and sold at the regular price. Q.: What is the maximum cost of repair per unit in order for the company to choose option (2)? A: $ per unit
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