Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gustavo Fring approached Walt & Jessie Pharmaceutical Co. to buy 50 pounds of product for $50,000 a pound. Regular customers are charged $79,000 for a

Gustavo Fring approached Walt & Jessie Pharmaceutical Co. to buy 50 pounds of product for $50,000 a pound. Regular customers are charged $79,000 for a pound of product. Walt and Jessie Pharmaceutical Co. has the capacity to make 1000 pounds of product per month. The following costs are associated with the company's normal monthly production of the sale of 970 pounds of product:

Direct Material per Pound of Product $8,000
Direct Labor per Pound of Product $2,000
Variable MOH per Pound of Product $3,000
Fixed MOH per Pound of Product $3,000

What is the minimum price Walt and Jessie Pharmaceutical Co. would be willing to accept per pound of product for the order?

Round your answer to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gleim CIA Review Part 3 Internal Audit Knowledge Elements

Authors: Irvin N. Gleim

2018 Edition

1618541153, 978-1618541154

More Books

Students also viewed these Accounting questions

Question

2. If , is it possible to have .

Answered: 1 week ago

Question

Connect with your audience

Answered: 1 week ago