Sung Sam, Inc. is currently designing a new digital camcorder that is projected to have the following per unit costs to manufacture:

Cost Categories                Unit Costs

Materials costs.............................$112

Labor costs.......................................85

Overhead costs..............................213

Total Unit Cost...............................213

Unit Costs.....................................$410

Sung Sam adds 30% to its manufacturing cost for corporate profit. Answer the following questions:

(a) What unit profit would Sung Sam realize on each camcorder?

(b) What is the overall cost to produce a batch of 10,000 camcorders?

(c) What would Sung Sam’s profit be on the batch of 10,000 if historical data shows that 1%of product will be scrapped in manufacturing, and 3% of finished product will go unsold, 2% of sold product will be returned for refund?

(d) How much can Sung Sam afford to pay for a contract that would lock in a 50% reduction in the unit material cost previously given? IT Sung Sam does sign the contract the sales price will remain the same as before.