What is the highest price per unit

Assignment Help Financial Accounting

Reference no: EM131216866

Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this? part, assuming a production level of? 6,000 units, are as? follows: Direct materials ?$4.00 Direct labor ?$4.00 Variable manufacturing overhead ?$3.00 Fixed manufacturing overhead ?$1.00 Total cost ?$12.00 The fixed overhead costs are unavoidable. Assuming no other use for its? facilities, what is the highest price per unit that Cruise Company should be willing to pay for the? part?

Reference no: EM131216866

Questions Cloud

What is the basis of the new machinery : Blue Corporation exchanges machinery with a basis of 200,000 and a FMV of 250,000 for machinery with a FMV of 175,000 and cash of 75,000. What is Blue’s realized gain or loss? What is Blue’s recognized gain or loss? What is the basis of the new machi..

Assume management desires to expand into global market : Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The company is currently operating at capacity so additional equipme..

Sales volume in dollars necessary to earn desired profit : Hoffman is evaluating a business opportunity to sell grooming kits at dog shows. Nolan can buy the grooming kits at a wholesale cost of $30 per set. He plans to sell the grooming kits for $80 per set. Determine the number of grooming kits NolanNolan..

What effect will this have on operating? income : Black Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Black Productions discontinues model F and rents the space formerly used to produce product F for? $15,000 per? year, w..

What is the highest price per unit : Cruise Company produces a part that is used in the manufacture of one of its products. what is the highest price per unit that Cruise Company should be willing to pay for the? part?

What is the desired ending inventory : Fosnight Enterprises prepared the following sales? budget: Month Budgeted Sales. The expected gross profit rate is? 30% and the inventory at the end of February was? $10,000. Desired inventory levels at the end of the month are? 20% of the next? mont..

Change in dollar amount on a per unit basis next year : Management at the Forrest Company currently sells its products for? $225 per unit and is contemplating a? 40% increase in the selling price for the next year. Variable costs are currently? 25% of sales revenue and are not expected to change in dollar..

Calculate the future value of the single cash flow deposited : calculate the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually at the rate specified.

Comprehensive forecast of the revenue-costs and cash flows : Imagine that you are a financial advisor for Netflix, Inc., and Amazon.com, Inc. You are tasked with creating a comprehensive forecast of the revenue, costs, and cash flows of these companies, answering key questions that may influence their future d..

User Account

All Pages