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Vise cost-plus pricing to deternine warious amoumty, 3 P9-34A (LO z) Auto Class Compuny ( MGC) manufactures and sells windshield products. AGC entered into a
Vise cost-plus pricing to deternine warious amoumty, 3 P9-34A (LO z) Auto Class Compuny ( MGC) manufactures and sells windshield products. AGC entered into a one-time contract to produce an additional 1,000 windshields for the local public transit autharity, at a price of "cost plus 20%." The company has a factory with a capacity of 9.000 units per year, but normal production is 4 ,0oo units per year, The annual coets to produce those 4,000 units ane follows: After completing half of the order, the company billed the authority for $138,000. However, the transit authority's parehasing agent then called the president of AGC to dispute the invoice. The parchasing agent stated that the inveice sher, the comperen been for $96,000. Instructions a. Calculate the components of the "total coet" unit price charged to the transit asthoriby, as determined by ACC. a. 3290 b. Caleulate the components of the "variable manufactarisg cost" anit price that should have been charged, as detersined by the transin authority's purchasing agent. h. S16o e. What price per unit would you recuenmesd? Explain your rausping. (Note: You do not need to linit yrurself to the costs selected by the conpany or by the agent.)
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