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Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were
Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were dwindling for Quality's workbenches due to aggressive pricing by competitors. Quality's workbench sells for $1,940 whereas the competition's comparable workbench sells for $1,700. Yewell determined that a price drop to $1,700 would be necessary to protect its market share and maintain an annual sales level of 14,600 workbenches. Cost data based on sales of 14,600 workbenches: Direct materials (pounds) Direct labor (hours) Machine setups (no. of setups) Mechanical assembly (machine hours) Budgeted Quantity 183,000 76,000 1,700 32,900 Actual Quantity 176,000 75,500 1,200 285,250 Actual Cost $3,458,000 829,000 258,000 3,766,000 The current profit per unit is (rounded to the nearest whole dollar)
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