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 units of a unique product, AutoA. Manufacturing costs per unit for AutoA follow:Direct materialsDirect manufacturing laborManufacturing overhead$Robabuy sellThe unit manufacturing overhead cost is based on a variable cost per unit of $ and fixed costs of $at full capacity of unitsThe nonmanufacturing costs, all variable, are $ per unit, and the selling price is $ per unit.A customer, the Lionn Co has asked Wolve to produce units of a modification of AutoA to be called RoboT RoboT would require the same manufacturing processes as AutoA, and the Lionn Co has offered to share equally the nonmanufacturing costs with Wolve. RoboT will sell at $ per unit.Required How many units are at the breakeven point? RobT If you want to get a profit of $ how many units you have to sell? What is the opportunity cost to Wolve of producing the units of RoboT The Foxx Corp. has offered to produce units of AutoA for Wolve so that Wolve may accept the RoboT offer. Foxx would charge WolveSlowy on calerations po po Care por ae pot Show your calculations Suppose Wolve had been working at less than full capacity, producing units of AutoA at the time the RoboT offer was made. What is the minimum price Wolve should accept for RoboT under these conditions?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
