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Kaur Company had a break-even point of 60,000 units, a variable cost of $35 per unit, and fixed costs of $350,000. What is Kaur Company's
Kaur Company had a break-even point of 60,000 units, a variable cost of $35 per unit, and fixed costs of $350,000. What is Kaur Company's sales price per unit? (round to the nearest one decimal place for all calculations) Question 13 3 pts Ritu Company currently makes 8,888 gaming systems a year. Ritu currently manufactures all of the components of the gaming system. The company is debating on whether it should continue to make one of the internal processing components or buy it from a supplier. Below is information regarding the costs to make the internal processing component in each gaming system: Direct materials: $4.4 Direct labor: $1.20 Variable OH:$2.50 Fixed OH:$4.00 An outside supplier has provided the purchase price of $15 total for the processing component. If the company accepts this, the company could utilize the production space to make another product which would increase their contribution margin by $23,000 a year. The company determined that 80% of fixed overhead is related to common overhead and will continue if bought. What is the total annual advantage/disadvantage of buying the internal processing component? (Put a - sign in front of your number if it is a disadvantage. Must get both the direction and amount correct for credit. Round to the nearest dollar.)
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