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2.85 points Unter Components manufactures low-cost navigation systems for Installation in ride-sharing cars. It sells these systems to varlous car services that can customize them
2.85 points Unter Components manufactures low-cost navigation systems for Installation in ride-sharing cars. It sells these systems to varlous car services that can customize them for thelr locale and buslness model. It manufactures two systems, the Star100 and the Star150, which differ in terms af capabilities. The following information is available: Costs per Unit Dircct materials Direct labor Variablc overhcad Fixed overhead $ 55 $65 30 15 24 10 80 Total cost per unit Price Units sold $ 169 S 220 $ 280 $ 300 2,000 4,000 The average wage rate is $15 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but curent production uses only 10,400 direct labor-hours. Required: a. A nationwide car-sharing service has offered to buy 2,400 Star100 systems and 2,400 Star150 systems if the price is lowered to $180 and $240, respectively, per unit. a-1. If Unter accepts the offer, how many direct labor-hours will be required to produce the adcitional systems? t labor-hours a-2. Complete the following table to determinethe differential profit increase (or decrease) if Unter accepts this proposal. Prices on regular sales will remain the same Dillerential revenues Star 1 Star 15 Ditterential costs
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