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Chapter 13 - Homework 5 - Algorithmic i Saved Help Help Save & Exit Submit Check my work 3 Problem 13-18 REV (Algo) Relevant Cost
Chapter 13 - Homework 5 - Algorithmic i Saved Help Help Save & Exit Submit Check my work 3 Problem 13-18 REV (Algo) Relevant Cost Analysis in a variety of Situations (LO13-2, LO13-3, LO13-4] 25 points 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 $60 per unit. The company's unit costs at this level of activity are given below: eBook Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 11.00 2.60 9.00 ($774,000 total) 3.70 3.00 ($250,000 total) $36.BO Print References A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1. 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 $2.70 per unit and an additional $23,220 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. Reg 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 $2.70 per unit and an additional $23,220 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
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