Question
SHOW ALL WORK PLEASE. Sooner Companys factory is operating at less than full capacity this year. It was purchasing parts from Oklahoma used in its
SHOW ALL WORK PLEASE.
Sooner Companys factory is operating at less than full capacity this year. It was purchasing parts from Oklahoma used in its manufacturing operations. The purchase cost included a negotiated price per unit (part) plus $5 per unit for shipping. If Sooner Co. makes the part in its own factory, the total cost per unit will be $83 including $8 per unit for fixed factory depreciation expense. 23,000 of the parts are normally purchased during the year. Now the parts can be manufactured by Sooner using unused capacity with no increase or decrease in fixed costs. Sooner decides to make the part and its net income increases $9,000. Calculate the negotiated price per unit of the parts that were previously purchased from Oklahoma (round to nearest $0.00).
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