| Full-cost base per unit Any guidance on this would be great! Schlickau Company manufactures basketball backboards. The following information pertains to the company's normal operations per month:
Output units 15,000 boards
Machine hours 4,000 hours
DL hours 5,000 hours
DL rate $12 per hour
DM rate $100 per unit
Variable OH $150,000
Fixed OH $300,000
Product and
Process design costs $200,000
Marketing and
distribution costs $250,000 Required:
a.) for long-run pricing, what is the full-cost base per unit?
b.) schlickau company is approached by an overseas city to fulfill a one-time only special order for 1,000 units. all cost relationships remain the same except for an additional one-time setup charge of $40,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order? |