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Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $62

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Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 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 12.00 2.20 8.00 ($656,000 total) 2.70 3.00 ($246,000 total) $37.40 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 102,500 Daks each year. A customer in a foreign market wants to purchase 20,500 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $12,300 for permits and licenses. The only selling costs that would be associated with the order would be $1.60 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. Reg 2

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