Question
Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 Daks each year at a selling price of $42
Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 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 | 10.00 | |||
Variable man overhead | 1.90 | |||
Fixed man overhead | 5.00 | ($435,000 total) | ||
Variable selling expenses | 4.70 | |||
Fixed selling expenses | 6.50 | ($565,500 total) | ||
Total cost per unit | $ | 36.60 | ||
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