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Cocoa Company produces chocolate bars. The following information is related to normal operations of the company each month: Output units 15,000 bars Machine-hours 4,000 hours

Cocoa Company produces chocolate bars. The following information is related to normal operations of the company each month: 

Output units                                             15,000 bars 

Machine-hours                                         4,000 hours 

Direct manufacturing labor-hours            5,000 hours 

Direct manufacturing labor per hour                    $12 

Direct materials per unit                                     $100 

Variable manufacturing overhead costs       $150,000 

Fixed manufacturing overhead costs          $ 300,000 

Product and process design costs               $200,000 

Marketing and distribution cost                   $250,000 


Required: 

a. For long-run pricing decisions, how much is the full-cost base per unit? 

b. Cocoa Company was offered by a company from abroad to fulfill a special order (one-time order) for 1000 units. All costs are the same except for an additional one-time installation fee of $ 40,000. No additional design, marketing or distribution costs will be incurred. What is the minimum bid that can be received per unit on this one-time special order?

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