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Toys Inc. manufacturers toy robots. They currently sell just one product called Wonderful that sells for $89 per unit. Production schedules are determined prior
Toys Inc. manufacturers toy robots. They currently sell just one product called "Wonderful" that sells for $89 per unit. Production schedules are determined prior to the beginning of each month. Financial data for the manufacturing operations of Toys Inc. for the past year are provided in the table below. Total Production Month Costs ($) (units) Jan 23,650 300 Feb 23,750 290 Mar 18,900 230 Apr 15,600 130 May 24,000 310 Jun 24,500 335 Jul 15,750 125 Aug 23,150 275 Sep 17,200 160 Oct 17,900 185 Nov 25,100 350 17,000 165 Dec Normal manufacturing capacity of the Toys Inc. factory is 245 units. When monthly demand exceeds normal capacity, Toys Inc. has been leasing a machine at a cost of $4,000 per month (the machine increases potential output to 370 units), and also receives a bulk discount on all raw materials purchases for monthly production. Calculate the discount per unit that Toys Inc. receives when raw materials are purchased for more than 245 units in a month.
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