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15 Ricardo Company has a single product called a Zea. The company normalty prodsces and sells o 00 s The company's unit costs at this

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15 Ricardo Company has a single product called a Zea. The company normalty prodsces and sells o 00 s The company's unit costs at this level of activity are given below Variable manufacturing cost Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit s 28.30 5.00 ($400,000 total 50 ($360,000) total S 39.50 One of the materials used in the production of Zets is obtained from a foreign supplier. Civil unrest in the supplier's country has caused a cutol in material shipments that is expected to last for one year Ricards Company has enough material on hand to operate at 50% of normal levels for one year. As an alternative, the company could close the plant down entirely for one year. Closing the plant would reduce fixed manufacturing ovethicad costs b 30% and the fixed selling expenses would continue at two thirds of their normal level during the oneya pend betwen (o) elosing the plant and What is the selling price per unit of Zet that would make the company indifterent (ii) not closing the plant for one year? A. S34.30 B. S36.00 C. $52.50 D. S30.00 E. None of the above

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