1)A firm in china has $30 per unit in variable costs and $1,200,000
1)A firm in china has $30 per unit in variable costs and $1,200,000
per year in fixed costs. Demand is estimated to be 104,000 units annually. if a markup of 40% on total cost is used to determine the price?
Round to two decimal places.
2)Turbo corporation, produces a hard disk driver that will sells
for $175 per unit. cost of producing 25,000 drives in the previous year was: Direct
material. $625,000. Direct labor375,000. Variable overhead125,000 Fixed
overhead1,500,000 Total cost. $2,625,000 the start of the current year, the
company received an order for 4,000 drives from a computer company in Jamaica.
Management of Turbo corporation has mixed feelings about the order. On the one
hand they welcome the order because they currently have excess capacity. Also,
this is the company’s first international order. On the other hand, the company
in Jamaican is willing to pay only $125 per unit. What will be the effect
on profit of accepting the order?
Round to two decimal places.