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Andretti Company has a single product called a Dak. The company normally produces and sells 83,000 Daks each year at a selling price of $42

Andretti Company has a single product called a Dak. The company normally produces and sells 83,000 Daks each year at a selling price of $42 per unit. The companys unit costs at this level of activity are given below:

Direct materials $ 8.50
Direct labor 11.00
Variable manufacturing overhead 3.20
Fixed manufacturing overhead 8.00 ($664,000 total)
Variable selling expenses 3.70
Fixed selling expenses 5.50 ($456,500 total)
Total cost per unit $ 39.90

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