a

DZ Company forecasts they will produce and sell 60,000 Olympic quality flying disks next year at a selling price of $32 per unit. The company's unit costs at this level of activity are given below: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Expenses Fixed Selling Expenses Total Cost Per Unit $10.00 4.50 2.30 5.00 $300,000 total 1.20 3.50 $210,000 total $26.50 a) The company has recently received a new proposal from the Bermuda Olympic committee to purchase 25,000 custom decorated disks. The disks would require a custom decal that costs $.30 each and would require DZ to purchase a tool for $7,500 to attach the decal. Assume that the company has capacity to produce 85,000 flying disks each year. What is the minimum (breakeven) price DZ should charge per unit if they accept the order