Richter Company has a single product called a Wim. The company normally produces
ID: 2478355 • Letter: R
Question
Richter Company has a single product called a Wim. The company normally produces and sells 75,000 Wims each year at a selling price of $43 per unit. The company’s unit costs at this level of activity are given below:
Assume again that Richter Company has sufficient capacity to produce 90,000 Wims each year. The company has an opportunity to sell 15,000 units in an overseas market. Import duties, foreign permits, and other special costs associated with the order would total $9,000. The only selling costs that would be associated with the order would be $4.70 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Richter Company has a single product called a Wim. The company normally produces and sells 75,000 Wims each year at a selling price of $43 per unit. The company’s unit costs at this level of activity are given below:
Direct Materials $8.10 Direct Labor 13.00 variable manufacturing overhead 4.90 Fixed manufacturing overhead 4.00 Variable selling epenses 5.70 Fixed selling expenses 6.00 Total cost per unit 41.70Assume again that Richter Company has sufficient capacity to produce 90,000 Wims each year. The company has an opportunity to sell 15,000 units in an overseas market. Import duties, foreign permits, and other special costs associated with the order would total $9,000. The only selling costs that would be associated with the order would be $4.70 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
break-even price per unit xxxExplanation / Answer
Diretct material 8.1 Direct labor 13 Variable manufacturing Overhead 4.9 selling Cost 4.7 special cost =9000/15000 0.6 Total Cost 31.3 break-even price per unit =31.30 per unit
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