Answer 1-a
Financial advantage | $ 826,450 |
Explanation:
Increased Sales in units | $ 25,500 |
Contribution margin per unit | $ 37.90 |
Incremental Contribution | $ 966,450 |
Added Fixed expense | $ 140,000 |
Incremental net income | $ 826,450 |
Answer 1-b
Yes |
Explanation:
As there is a financial advantage of $ 826,450.
Answer 2
Break-even price per unit | $ 26.20 |
Explanation:
Variable manufacturing Cost per Unit | $ 19.40 |
Import duties per unit | $ 4.70 |
Permits | $ 0.60 |
Shipping Cost | $ 1.50 |
Break-even price per unit | $ 26.20 |
Answer 3
Relevant unit cost | $ 4.70 |
Explanation:
Only Variable selling cost is considered. This is because all other costs are already incurred and are irrelevant for decision making.
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