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A NASA contractor has been able to sum up its total twelve-monthly flat costs as $100,000 and the total changeable cost per unit of assembly
A NASA contractor has been able to sum up its total twelve-monthly flat costs as $100,000
and the total changeable cost per unit of assembly as $33. (a) If only 10,000 units is all that is
expected to sell to the government this year what should per unit selling price be to make a
25% profit this year? (b) If foreign sales of 3000 units per year is to be added to the 5000
units government contract above and a 25% profit is acceptable for this contractor again,
what could be the new selling price per unit?
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