Question
Barker Company has a single product called a Zet. The company normally produces and sells 87,000 Zets each year at a selling price of $40
Barker Company has a single product called a Zet. The company normally produces and sells 87,000 Zets each year at a selling price of $40 per unit. The companys unit costs at this level of activity are given below:
Direct materials | $ | 8.50 | |
Direct labor | 8.00 | ||
Variable manufacturing overhead | 2.80 | ||
Fixed manufacturing overhead | 9.00 | ($783,000 total) | |
Variable selling expenses | 2.70 | ||
Fixed selling expenses | 6.50 | ($565,500 total) | |
Total cost per unit | $ | 37.50 | |
A number of questions relating to the production and sale of Zets are given below. Each question is independent. Assume again that Barker Company has sufficient capacity to produce 108,750 Zets each year. The company has an opportunity to sell 21,750 units in an overseas market. Import duties, foreign permits, and other special costs associated with the order would total $15,225. The only selling costs that would be associated with the order would be $1.40 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
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