Homework Answers
ANSWER:
| 13400 units | 18250 units | |
|---|---|---|
| Material cost (at $15 per unit) | $201000 | $273750 |
| Labor cost (at $15 per unit) | $201000 | $273750 |
| Salary of supervisor | $73000 | $73000 |
| Rental cost of equipment | $18000 | $18000 |
| Total cost | $493000 | $638500 |
| Maximum price per unit (total cost/number of units) | $36.79 | $34.99 |
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outside supplier for $4.70 each. If Baird purchases from the
outside supplier, it would continue to sell and distribute the
cream under its own brand name. Baird’s accountant constructed the
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of which is a skin cream designed to reduce the signs of aging.
Baird produces a relatively small amount (17,000 units) of the
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outside supplier for $4.70 each. If Baird purchases from the
outside supplier, it would continue to sell and distribute the
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