Question: Casting Technology Resources (CTR) has purchased 10,000 pumps annually from Kobec, Incorporated. Because the price keeps increasing and reached $68.00 per unit last year, CTRs

Casting Technology Resources (CTR) has purchased 10,000 pumps annually from Kobec, Incorporated. Because the price keeps increasing and reached $68.00 per unit last year, CTRs management has asked for an estimate of the cost of manufacturing the pump in CTRs facilities. CTR makes stampings and castings and has little experience with products requiring assembly. Calculate the relevant cost per unit.

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