Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider Tintos special order alone, what is the breakeven point in sales units? Sage Company manufactures printers and sells them for $143 each. Sage's capacity
Consider Tintos special order alone, what is the breakeven point in sales units?
Sage Company manufactures printers and sells them for $143 each. Sage's capacity is 21,000 units per year. The following are the costs for making one unit: Direct materials $26 Direct labour 52 13 Variable manufacturing overhead Fixed manufacturing overhead* Variable marketing and selling 18 11 Fixed marketing and selling* 4.20 *Fixed costs per unit are based on the total capacity of 21,000 units. Tinto Printer Wholesaler would like to place a special one-time order of 5,250 printers, and offers to pay $116 per unit. This special order will incur one-time manufacturing fixed costs of $45,150. Since Tinto places the order directly with Sage, there will be no variable marketing and selling expenses incurredStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started