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Jawal Co. has a single product called a Phono. The company normally produces and sells 80000 Phonos each year at a selling price of $50
Jawal Co. has a single product called a Phono. The company normally produces and sells 80000 Phonos each year at a selling price of $50 per unit. The company's units production, selling price, costs at this level of activity are given below: Description Unit$ Production Level Phono Units Selling Price Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit Value 80000 50.00 5.60 11.00 3.40 7.00 4.50 4.70 36.20 21 Assume again that Jawal Co. has sufficient capacity to produce 105,300 Phonos each year. A customer in a foreign market ants to purchase 27,300 Phonos. Import duties on the Phonos would be $3.70 per unit, and costs for permits and licenses would be $21,840. The only selling costs that would be associated with the order would be $1.80 per unit shipping cost. Compute the per unit break-even price on this order. (5 points) Amount $ Explanation Description Variable manufacturing cost per unit Import duties per unit Permits and licenses Shipping cost per unit Break-even price per unit 0.00
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