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Florida Kitchens produces high - end cooking ranges. The costs to manufacture and market the ranges at the company s volume of 3 , 0
Florida Kitchens produces highend cooking ranges. The costs to manufacture and market the ranges at the companys volume of units per quarter are shown in the following table:
Unit manufacturing costs
Variable costs $
Fixed overhead
Total unit manufacturing costs $
Unit nonmanufacturing costs
Variable
Fixed
Total unit nonmanufacturing costs
Total unit costs $
The company has the capacity to produce units per quarter and always operates at full capacity. The ranges sell for $ per unit.
b Considering this opportunity to use the freedup space, what is the maximum purchase price per unit that Florida Kitchens should be willing to pay the Burns Electric to assemble regular ranges?
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