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SP22 FOURTH Home nnouncements rades Marquette Mahufacturing produces invisible electric dog fences, sold through retail locations nationwide. The selling price of the fence is $150
SP22 FOURTH Home nnouncements rades Marquette Mahufacturing produces "invisible" electric dog fences, sold through retail locations nationwide. The selling price of the fence is $150 per unit. The cost to manufacture and market the fences is shown below. These figures represent the cost of the company's normal volume of 3,000 units per month. Unit Manufacturing Costs Variable materials $ 15.00 labus tcomes ogle Drive ace 365 ple Total unit manufacturing costs Unit Marketing Costs Variable labor $17.50 Variable overhead S 12.50 Fixed overhead $ 16.00 $61.00 Variable $12.00 Fixed overhead $17.00 Total unit marketing costs $29.00 Total unit costs $90.00 (NOTE: Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Also, ignore taxes or other costs not specifically mentioned in the questions.) 1. The company's marketing team estimates that sales volume could be increased to 5,000 units per month if the sales price was lowered from $150 to $125 per unit. The production manager has confirmed that they have the capacity to increase production to this level. Assume that the cost
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