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Required Information Exerclse 15-32 Pricing, Advertlsing, and Speclal-Order Declslons (LO 15-10) [The following Information applies to the questions displayed below.] Corrlentes Company produces a single
Required Information Exerclse 15-32 Pricing, Advertlsing, and Speclal-Order Declslons (LO 15-10) [The following Information applies to the questions displayed below.] Corrlentes Company produces a single product in its Buenos Alres plant that currently sells for 6.20 p per unit. Fixed costs are expected to amount to 59,000p for the year, and all varlable manufacturing and administrative costs are expected to be Incurred at a rate of 2.50p per unit. Corrlentes has two salespeople who are paid strictly on a commission basis. Their commission is 11 percent of the sales revenue they generate. (Ignore Income taxes.) ( p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.104 U.S. dollar.) Exercise 15-32 Part 1 Required: 1. Suppose management alters its current plans by spending an additional amount of 3,600p on advertising and Increases the selling price to 7.20p per unit. Calculate the profit on 60,000 units. (Do not round Intermedlate calculations. Enter your answer In pesos.) Required Information Exerclse 15-32 Pricing, Advertising, and Speclal-Order Declslons (LO 15-10) [The following Information applies to the questions displayed below.] Corrlentes Company produces a single product in its Buenos Alres plant that currently sells for 6.20p per unlt. Fixed costs are expected to amount to 59,000p for the year, and all varlable manufacturing and administrative costs are expected to be Incurred at a rate of 2.50p per unit. Corrlentes has two salespeople who are paid strictly on a commission basis. Their commission is 11 percent of the sales revenue they generate. (Ignore Income taxes.) ( p denotes the peso, Argentina's national currency. Many countrles use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.104 U.S. dollar.) Exercise 15-32 Part 2 2. The Sorde Company has just approached Corrlentes to make a speclal one-time purchase of 17,000 units. These units would not be sold by the sales personnel, and, therefore, no commission would have to be pald. What is the price Corrlentes would have to charge per unit on this special order to earn additional profit of 20,400 p? (Do not round Intermedlate calculations. Round your answer to 2 decimal places. Enter your answer In pesos.)
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