Question
Typewritten answers only, no handwritten answers! NewCar Inc plans to sell a new model auto kit to dealers at $8,000 per car. The consumer assembles
Typewritten answers only, no handwritten answers! NewCar Inc plans to sell a new model auto kit to dealers at $8,000 per car. The consumer assembles the car in approximately 4 hours. Below is additional information on the project.
NewCar Inc's investment in the project $1,000,000.00 (one million dollars).
Material cost per car $5,000
Labor cost per car $ 1,000
Factory Overheard $ 200,000
Distribution (delivery) per car $ 500
Advertising $20,000
Manufacturers suggested retail price $10,000
Based on pieces of information in your possession, calculate the following:
1. Contribution per unit? (10 points)
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