Below table is the desired results: -
Calculation of Contribution Margin per unit | ||
Selling Price | 58.00 | |
Direct Material | 6.50 | |
Direct Labor | 10.00 | |
Variable Manufacturing Overhead | 2.00 | |
Variable Selling Expense | 3.70 | |
Contribution Margin Per Unit | 35.80 | 58-22.20 |
Additional contribution for sale | 733,900.00 | 35.80*20500 |
Increase in Fixed Selling Expenses | 120,000.00 | |
Financial Advantage(disadvantage) | 613,900.00 | 733900-120000 |
Net Advantage | ||
Since there is additional profit, | ||
the additional investment is justified | YES | |
Calculation of Break-even Price | ||
Direct Material | 6.50 | |
Direct Labor | 10.00 | |
Variable Manufacturing Overhead | 2.00 | |
Import Duties | 2.70 | |
Selling Cost | 1.60 | |
Unit Variable Cost | 22.80 | |
Total Cost | 481,750.00 | 20500*22.8+14350 |
Break-even Price | 23.50 | 481750/20500 |
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Andretti Company has a single product called a Dak. The company normally produces and sells 82,000...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $58 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 6.50 10.00 2.00 4.00 ($328,000 total) 3.70 3.50 ($287,000 total) $29.70 A number of questions relating to the production and...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $62 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 9.00 3.20 4.00 ($328,000 total) 3.70 3.00 ($246,000 total) $32.40 A number of questions relating to the production and...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 8.50 10.00 2.70 7.00 ($574,000 total) 1.70 3.00 ($246,000 total) $32.90 A number of questions relating to the production and...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $64 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 7.50 Direct labor 10.00 Variable manufacturing overhead 3.80 Fixed manufacturing overhead 10.00 ($820,000 total) Variable selling expenses 2.70 Fixed selling expenses 3.00 ($246,000 total) Total cost per unit $ 37.00 A number of questions relating to the production...
Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 Daks each year at a selling price of $62 per unit. The company's unit costs at this level of activity are given below: $ 7.50 12.00 3.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit 4.00 ($340,000 total) 3.70 3.50 ($297,500 total) $33.70 A number of questions relating to the production and...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $64 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 7.50 Direct labor 10.00 Variable manufacturing overhead 2.00 Fixed manufacturing overhead 4.00 ($328,000 total) Variable selling expenses 4.70 Fixed selling expenses 4.00 ($328,000 total) Total cost per unit $ 32.20 A number of questions relating to the production...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $56 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 8.50 Direct labor 11.00 Variable manufacturing overhead 3.80 Fixed manufacturing overhead 4.00 ($328,000 total) Variable selling expenses 2.70 Fixed selling expenses 4.50 ($369,000 total) Total cost per unit $ 34.50 A number of questions relating to the production...
Andretti Company has a single product called a Dak. The company normally produces and sells 84,000 Daks each year at a selling price of $56 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 6.50 9.00 2.50 4.60 ($336,000 total) 4.70 3.00 ($252,000 total) $ 29.70 A number of questions relating to the production...
Andretti Company has a single product called a Dak. The company normally produces and sells 121,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are given below s 8.50 Direct materials Direct labor 9.00 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 3.60 3.00 ($363,000 total) 1.70 5.50 ($665,500 total) $31.30 Total cost per unit A number of questions relating to the production and...
Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $58 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 6.50 9.00 2.70 8.00 ($648,000 total) 2.70 2.50 ($202,500 total) $31.40 A number of questions relating to the production and...