1.

Assume again that Barker Company has sufficient capacity to produce 109,350 Zets each year. The company has an opportunity to sell 28,350 units in an overseas market. Import duties, foreign permits, and other special costs associated with the order would total $22,680. The only selling costs that would be associated with the order would be $1.60 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

2.

One of the materials used in the production of Zets is obtained from a foreign supplier. Civil unrest in the suppliers country has caused a cutoff in material shipments that is expected to last for three months. Barker Company has enough material on hand to operate at 25% of normal levels for the three-month period. As an alternative, the company could close the plant down entirely for the three months. Closing the plant would reduce fixed manufacturing overhead costs by 30% during the three-month period and the fixed selling expenses would continue at two-thirds of their normal level. What would be the impact on profits of closing the plant for the three-month period? (Input the amount as a positive value. Round your intermediate calculations of units produced and sold to the nearest whole number. Do not round your other intermediate calculations. Omit the "$" sign in your response.)

Barker Company has a single product called a Zet. The company normally produces and sells 81,000 Zets each year at a selling price of $42 per unit. The company's unit costs at this level of activity are given below. 7.50 Direct materials 9.00 Direct labor Variable manufacturing overhead 2.80 Fixed manufacturing overhead 5.00 ($405,000 total) 3.70 Variable selling expenses Fixed selling expenses 4.50 ($364,500 total) 32.50 Total cost per unit