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12.2) Zoie Co. produces and sells one product. The cost of producing and selling a single unit of this product at the company's normal activity
12.2) Zoie Co. produces and sells one product. The cost of producing and selling a single unit of this product at the company's normal activity level level of 5,000 units per month is:
Direct Materials | 4.7 |
Direct Labor | 3.9 |
Variable MOH | 1.9 |
Fixed MOH | 4 |
Variable Selling & Admin. Expense | 6.5 |
Fixed Selling & Admin. Expense | 3.4 |
The normal selling price is $55 per unit and the company's capacity is 7,000 units per month. The company has 500 units leftover from last month that need to be sold at a reduced price.
What is the relevant unit cost (in dollars) for determining the a minimum selling price for the 500 leftover units?
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