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Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of
Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $56 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 $ 7.50 11.00 2.10 5.00 ($440,000 total) 3.70 3.00 ($264,000 total) $ 32.30
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