Question: Wolve Corp. is working at full production capacity producing 1 0 , 0 0 0 units of a unique product, AutoA. Manufacturing costs per unit

Wolve Corp. is working at full production capacity producing 10,000 units of a unique product, AutoA. Manufacturing costs per unit forAutoA are followsDirect materials is $2Direct manufacturing labour is $3Manufacturing overhead is $5.The unit manufacturing overhead cost is based on a variable cost per unit of $2 and fixed costs of $30,000)(at full capacity of 10,000 units)inunitsThe nonmanufacturing costs, all variable, are $4 per unit, and the selling price is $20 per unit.A customer, the Lionn Co., has asked Wolve to produce 2,000 units) of a modification of AutoA, to be called Robo T Robo I would require the same manufacturing processes) as AutoA, and the Lionn Co. has offered to share equally the monmanufacturing costs with Wolve. Robo_T will sell at $15 per unit.Required1. How many units are at the break-even point?Target profit1. If you want to get a profit of $5,000, how many units you have to sell?2. What is the opportunity cost to Wolve of producing the 2,000 units of Robo T?3. The Foxx Corp. has offered to produce 2,000 units of AutoA for Wolve so that Wolve may accept the Robo_T offer. Foxx would charge Wolve $14 per unit for the AutoA. Should Wolve accept the Foxx offer?(Show your calculations)5. Suppose Wolve had been working at less than full capacity, producing8,000 units of AutoA at the time the Robo_T offer was made. What is the minimum price Wolve should accept for Robo_T under these conditions?

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