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Munoz Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production
Munoz Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 2,100 pagers 178 Unit-level manufacturing costs are expected to be $31 Sales commissions will be established at $210 per unit. The current facility level costs, including depreciation on manufacturing equipment ($71000), rent on the manufacturing facility ($61,000, depreciation on the administrative equipment ($15.300), and other foed administrative expenses (577450), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product modems) and to the new product pagers) on the basis of the number of units of product made e, 6,100 modems and 2100 pagers! Required o. Determine the per unit cost of making and selling 2 100 pagers (Do not found intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pages could be sold at a price of $45 each should Munoz make the pages Cost perunt b houd Munt make the pages on the pagera
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