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Starting Point (I): The DWARF Plc produces and sells tourists souvenirs for made out of painted clay. The model Swiss chalet medium is sold
Starting Point (I): The DWARF Plc produces and sells tourists souvenirs for made out of painted clay. The model "Swiss chalet medium is sold in Swiss souvenir shops at a price of CHF 25.- per unit. Total cost of production are CHF 18.- per unit. These costs contain pro rata production fixed costs that refer to a production volume of 150,000 units. Total production fixed costs for this product are CHF 600,000.-. a) Calculate the variable cost of production per unit and mark the correct amount. Show your calculation! Answers without depicting the calculation get not awarded any points (2 points) variable cost for one "Swiss chalet medium" is: 3.- CHF Stk. 4.- CHF/Stk. 7.- CHF/Stk. 14. CHF Stk. 18. CHF Stk. Starting Point (II): The foreign trade advancement organization S-GE (Swiss Global Enterprise) wants to order 10'000 units of "Swiss Chalet medium as give-aways for the south-eastern Asian market at a price of CHF 12. per unit. You can assume that your current customers will not become aware of a lower than market price. Assume for all your further considerations variable production costs per unit of CHF 10.-. b) Based on this information, would you except this order if DWARF would have the necessary production capacity? Explain briefly (3 points). Accept additional order at a sales price of CHF 12.- per unit Reject additional order reasoning:
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