High Frequency manufactures and sells MP-3 players. Information

High Frequency manufactures and sells MP-3 players. Information on last year’s operations (sales and production of the 2010 model) follows.
Sales price per unit ....... $70
Costs per unit
Direct material ......... $16
Direct labor ........... 14
Overhead (50% variable) ..... 12
Selling costs (40% variable) .... 15
Production in units ........ 10,000
Sales in units ........... 9,500
At this time (April 2011), the 2011 model is in production and it renders the 2010 model obsolete. If the remaining 500 units of the 2010 model MP-3 players are to be sold through regular channels, what is the minimum price the company would accept for the radios?

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Cost Accounting Tutors
Ask questions directly from Qualified Online Cost Accounting Tutors .
Best for online homework assistance.