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Variable materials $ 15.00
Variable labor $ 17.50
Variable overhead $ 12.50
Fixed overhead $ 16.00
Total unit manufacturing costs $ 61.00
Unit Marketing Costs
Variable $ 12.00
Fixed overhead $ 17.00
Total unit marketing costs $ 29.00
Total unit costs $ 90.00
Problem 1: Marquette has an opportunity to sell its product through an online retailer. To begin selling through this online platform, they are required to ship 2,000 units to the retailers' order fulfillment warehouse. The other condition of this offer is that they pay a one-time vendor marketing fee of $5,000. To get the units to the fulfillment warehouse by the deadline Marquette will need to pay for expedited shipping at a cost of $10 per unit. What is the minimum price Marquette should charge the retailer for this initial order of 2,000 units?
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