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Documents ferences Mailings Review View o Spacing HngHeading 2 Case Problem: Below are The Great Pen Company unit costs of manufacturing and marketing a high-style

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Documents ferences Mailings Review View o Spacing HngHeading 2 Case Problem: Below are The Great Pen Company unit costs of manufacturing and marketing a high-style pen at an estimated out-put level of 20,000 units per month. Manufacturing costs Direct materials Direct manufacturing labor Variable manufacturing indirect costs 0.80 Fixed manufacturing indirect costs0.50 $1.00 1.20 Marketing costs: Variable Fixed $1.50 0.90 REQUIRED Unless stated otherwise, assume each pen sells for $6.00 each. Show all calculations. 1. The company received a one-time-only offer for 10,000 units from a company in a foreign market in which price competition is keen. The company expects that shipping costs for this special order will amount to only $0.75 per unit. However, the company will incur an additional $4,000 fixed marketing costs due to meeting complex foreign market regulations. The company incurs no variable marketing costs other than the shipping costs. Domestic business will be unaffected by the offer. The selling price per unit to break- even is a. $3.50 b. $4.15 c. $4.25 d. $3.00 .$5.00

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