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Can company sell competitor price on the flanges

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Reference no: EM132638851

HASF Glassworks makes glass flanges for scientific use Material cost Rs.10 per flange and the glass blowers are paid a wage rate of 100 per hours a glass blower blows 20 flanges in two hours. Fixed manufacturing costs for flanges are 25000 per period. other non-manufacturing cost associated with flanges are 10,000 per period and are fixed.

Required:

Question a. Find out variable cost per units and total fixed cost.

Question b. Assume Company manufactures and sells 10,000 flanges this period their competitor sells flanges for 15 each. can company sell below competitor price and make a profit on the flanges
How would be your answer to requirement 2 differ if company made and sold 20,000 flanges this period why

 

Reference no: EM132638851

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