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What unit price would the company have to charge to make kd

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Reference no: EM132778404

The cost to produce 8,000 units at 70% capacity is:

Direct materials: KD 16,000

Direct labor: KD 8,000

Factory overhead, all fixed: KD 12,000

Selling expense (40% variable, 60% fixed): KD 8,000

Problem 1: What unit price would the company have to charge to make KD 2,000 on a sale of 500 additional units that would be shipped out of the normal market area?

Select one:

a. KD 8.40

b. KD 7.40

c. KD 8.90

d. KD 7.00

Reference no: EM132778404

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