Question: Please help me solve this problem. Last time i posted this question, i got wrong answer so please make sure you answer it right. thanks
Problem B Hi-Tech is the creator of Y-Go, a technology that weaves silver into the fabric to kill bacteria and odour on clothing while managing heat. Y-GO has become very popular in undergarments for sports activities. Operating at capacity, Hi-Tech can produce 500,000 undergarments each year. The normal selling price is $10 per unit. The per unit cost for each unit is as follows: Per uit Direct materiale $2.00 Director 0.se Variable manufacturing overhead 100 Fixed manufacturing overhead 1.25 Variable selling experties The Canadian armed forces (CAF) has approached Hi Tech and expressed an interest in purchasing 75,000 Y-GO undergarments for soldiers stationed in hot climates. Required: To answer a, b, and c, use the minimum price model: Minimum price model Variable cost XX Plus Lost CM o repular sales Fals Total minimum price (TMP) Unit price (TMPmits in special order) a) If Hi-Tech is operating at 100% capacity what is the minimum price to charge? b) If Hi-Tech is operating at 90% capacity what is the minimum price to charge? c) If Hi-Tech is operating at 70% capacity what is the minimum price to charge? d) Assume High Tech is operating at 90% capacity and Hi-tech receives a special order from the CAF for 75,000 Y-Gos at a selling price of $8.00 per unit. Compute the increase in profit (or loss) if High Tech accepts the order
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