Table 1
Tech Engineering in TN Is Making a Product

Table 1
Tech Engineering in TN is making a product for the overseas market.
The following cost data for the product has been compiled.
$$\begin{array} { | l | l | } \hline \text { Item } & \text { Cost } \\\hline \text { Selling price } & \$ 167 \\\hline \text { Materials and purchased parts } & \$ 25 / \text { unit } \\\hline \text { Direct Labor } & 2 \mathrm { hrs } \text { at } \$ 20 \text { per hour } \\\hline \text { Fixed Cost } & \$ 1,400,000 \\\hline\end{array}$$
-To reduce the breakeven volume to 15,000 units, what should be the selling price?

A) $210.33
B) $190.33
C) $241.35
D) None of these

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Sign up to view answer