Question
Garrett's Glassworks makes glass flanges for scientific use. Materials cost $1 per flange, and the glass blowers are paid a wage rate of $ 23
Garrett's Glassworks makes glass flanges for scientific use. Materials cost $1 per flange, and the glass blowers are paid a wage rate of $ 23 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $26,000 per period. Period (nonmanufacturing) costs of flanges are $12000 per period, and are fixed.
Requirement 2. Assume Garrett's Glassworks manufactures and sells 5000 flanges this period. Its competitor, Flora's Flasks, sells flanges for $ 9.75 each. Can Garrett sell below Flora's price and still make a profit on the flanges?
Begin by determining the formula used to calculate the total cost per unit.
( | Total fixed costs | + | Total variable costs | ) / | Units produced and sold | = | Total cost per unit |
The total cost per unit when manufacturing 5000 flanges is ____ therefore, they ______make a profit, when compared to Flora's Flasks selling price of $ 9.75 each. (Round the total cost per unit to two decimal places.)
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