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The administrators of the E-Smart company have defined the relevant costs for a production of 5,000 computers, which are presented in the following table: Materials
The administrators of the E-Smart company have defined the relevant costs for a production of 5,000 computers, which are presented in the following table:
Materials Direct | $2,300,000 |
Direct manufacturing labor | 320,000 |
Total costs | $2,620,000 |
Determine the relevant cost per computer, where any set selling price above that amount improves E-Smart's profitability.
$64
$524
$460
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