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ndretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling rice of $64
ndretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling rice of $64 per unit. The company's unit costs at this level of activity are given below: Assume again that Andretti Company has sufficient capacity to produce 100,000 Daks each year. A customer in a foreign market wants to purchase 20,000 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $14,000 for permits and licenses. The only selling costs that would be associated with the order would be $2.70 per unit shipping cost. What is the break-even price per unit on this order? (Round your answers to 2 decimal places.)
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