Question
A buyer placed an initial order with a supplier named Ronco that makes brake assemblies (units). The order was for 100 units at a per-unit
A buyer placed an initial order with a supplier named Ronco that makes brake assemblies (units). The order was for 100 units at a per-unit price of $540. The buyer collected the following cost assumptions about Ronco:
Direct Material Costs $200/unit
Direct Labor Costs $100/unit (5 hours/unit at $20/hour labor rate)
Overhead Costs $150/unit (calculated at 150% of direct labor)
Total Costs of Goods Sold $450/unit
Sellers Profit (20% of total) $90 cost markup
Total price per unit = $540
At 200 units, what should the buyer expect to pay for these units when factoring in an 80% learning curve?
Group of answer choices
$540/unit
$516/unit
$432/unit
$480/unit
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