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MMLU / Match Co. manufactures a product with the following costs per unit based on a…

Problem

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question

Match Co. manufactures a product with the following costs per unit based on a maximum plant capacity of 400000 units per year: Direct materials 60Directlabor10Variableoverhead40Fixedoverhead30Total 60 Direct labor 10 Variable overhead 40 Fixed overhead 30 Total 140 Match has a ready market for all 400000 units at a selling price of 200each.Sellingcostsinthismarketconsistof200 each. Selling costs in this market consist of 10 per unit shipping and a fixed licensing fee of $50000 per year. Reno Co. wishes to buy 5000 of these units on a special order. There would be no shipping costs on this special order. What is the lowest price per unit at which Match should be willing to sell the 5000 units to Reno?
Plain-text mathematical notation (without MathML)
Match Co. manufactures a product with the following costs per unit based on a maximum plant capacity of 400000 units per year: Direct materials 60Directlabor10Variableoverhead40Fixedoverhead30Total140 Match has a ready market for all 400000 units at a selling price of 200each.Sellingcostsinthismarketconsistof10 per unit shipping and a fixed licensing fee of $50000 per year. Reno Co. wishes to buy 5000 of these units on a special order. There would be no shipping costs on this special order. What is the lowest price per unit at which Match should be willing to sell the 5000 units to Reno?
Original LaTeX notation
Match Co. manufactures a product with the following costs per unit based on a maximum plant capacity of 400000 units per year: Direct materials $ 60 Direct labor 10 Variable overhead 40 Fixed overhead 30 Total $140 Match has a ready market for all 400000 units at a selling price of $200 each. Selling costs in this market consist of $10 per unit shipping and a fixed licensing fee of $50000 per year. Reno Co. wishes to buy 5000 of these units on a special order. There would be no shipping costs on this special order. What is the lowest price per unit at which Match should be willing to sell the 5000 units to Reno?

choices

  1. $110
  2. $140
  3. $190
  4. 200

subject

professional_accounting

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Source and history

task_id
73fd32af-961e-540d-937d-336d45bb50b3
task_key
all--test--73fd32af-961e-540d-937d-336d45bb50b3
task_revision_id
1
config / split
all / test

Official source

initial import