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9 Trader Tom's can buy widgets from The Widget Company for $14 apiece or make them in-house. Tom already has a factory for making thingamajigs

9 Trader Tom's can buy widgets from The Widget Company for $14 apiece or make them in-house. Tom already has a factory for making thingamajigs and current fixed manufacturing costs are $11,000. Here is how Tom expects his costs to look with 1,000 widgets being built in-house:

Hourly Rate Paid to Workers in Widget Department: $15

Hourly Rate Paid to the Widget Manufacturing Dept. Supervisor: $30

Man hours per widget: 0.25 hours

Direct Materials per widget in kilograms: 0.3kg

Cost per Kilogram of Direct Materials: $3.50

Fixed Manufacturing Overhead: $12,000

What is Trader Tom's Total Unit Cost to produce one Widget in-house?

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