Posted: July 6th, 2016

Compute the per unit break-even price on this order?

Required:
1. Assume that Barker Company has sufficient capacity to produce 100,800 Zets each year without any increase in fixed manufacturing overhead costs. The company could increase sales by 20% above the present 84,000 units each year if it were willing to increase the fixed selling expenses by $110,000.

a. Calculate the incremental net operating income (Negative amount should be indicated with a minus sign. Do not round intermediate calculations.)

b. Would the increased fixed selling expenses be justified?

2. Assume again that Barker Company has sufficient capacity to produce 100,800 Zets each year. The company has an opportunity to sell 16,800 units in an overseas market. Import duties, foreign permits, and other special costs associated with the order would total $11,760. The only selling costs that would be associated with the order would be $1.50 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Live Chat+1-631-333-0101EmailWhatsApp