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Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90p per unit. Fixed costs are expected to amount to
Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90p per unit. Fixed costs are expected to amount to 52,000p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.10p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 8 percent of the sales revenue they generate. (Ignore income taxes.) ( p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.010 U.S. dollar.) The Sorde Company has just approached Corrientes to make a special one-time purchase of 18,000 units. These units would not be old by the sales personnel, and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge er unit on this special order to earn additional profit of 21,600p ? ote: Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in pesos
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