| Managerial Accounting I am taking a class and I can not figure out this question. Can someone please help. I know the answer is $10.30, yet I do not know how to get it. Here is the question.
Refer to data.
Total % Per unit
Sales $480,000 100.00% $12.00
Less variable expenses:
Direct materials 120,000 25.00% 3.00
Direct labor 65,600 13.67% 1.64
Variable overhead 20,000 4.17% 0.50
Variable selling:
Commissions 38,400 8.00% 0.96
Shipping 14,000 2.92% 0.35
Variable administrative 3,200 0.67% 0.08
Total variable expense 261,200 54.42% 6.53
Contribution margin 218,800 45.58% $5.47
Less fixed expenses:
Manufacturing overhead 70,000
Selling 110,000
Administrative 85,000
Total fixed expenses 265,000
Net operating income (loss) ($46,200)
A company wants to purchase 15,000 units on a special price basis. There will be no sales commission on these units. Increase in shipping is 80%. Decrease in variable admin costs is 50%. Alpine has to a foreign import duty of $3150. 00 to get goods into country. Given these data what unit price would have to be quoted on the 15,000 units by Alpine to allow the company to earn a profit of $18,000 on total operation. Regular business would not be distrbed by this special order.
I hope some one can answer this. Remember the answer is $10.30. I need to know how to get that answer.
Tonya33 ??? |