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Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $62
Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $62 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 $ 9.50 11.00 3.50 8.00 ($688,000 total) 2.70 4.00 ($344,000 total) $38.70 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 2. Assume again that Andretti Company has sufficient capacity to produce 111,800 Daks each year. A customer in a foreign market wants to purchase 25,800 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $3.70 per unit and an additional $15,480 for permits and licenses. The only selling costs that would be associated with the order would be $1.80 per unit shipping cost. What is the break-even price per unit on this order? Complete this question by entering your answers in the tabs below. Req 2 Assume again that Andretti Company has sufficient capacity to produce 111,800 Daks each year. A customer a foreign market wants to purchase 25,800 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $3.70 per unit and an additional $15,480 for permits and licenses. The only selling costs that would be associated with the order would be $1.80 per unit shipping cost. What is the break-even price per unit on this order? (Round your answers to 2 decimal places.) Show less Break-even price per unit previous next
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