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The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Product 1 is
The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows. Product 2 $600,000 Revenues Var Mfg Var G&A Fixed Mfg Fixed GSA Unit Sales Product 1 $300,000 $240,000 $ 60,000 $ 50,000 $ 40,000 $27,000 $ 32,000 $ 45,000 1,500 $ 80,000 2,500 Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. What is the current operating profit per unit for Product 1? Round to the nearest $0.01. The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows. Revenues Var Mfg Product 1 $300,000 $ 50,000 Var G&A Fixed Mfg Fixed G&A $ 40,000 $ 18,000 Unit Sales $170,000 1,500 Product 2 $600,000 $140,000 $ 60,000 $ 32,000 $180,000 2,500 Unless otherwise stated assume the fixed costs given above are allocated coats and unavoidable. Assume the Dubs division has a total manufacturing capacity of 4,000 wheels per year. If the maximum external demand for either product separately is 3,000 units, what is the total profit Dubs can earn if it optimizes its production schedule? Round to the neaarest $1.00
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