(Solved):Assume that Richter Company has sufficient capacity to produce 101,400 Wims each year without any…

 

Question

Richter Company has a single product called a Wim. The company normally produces and sells 78,000 Wims each year at a selling price of $37 per unit. The company’s unit costs at this level of activity are given below:

Direct materials $ 6.10
Direct labor 12.00
Variable manufacturing overhead 3.00
Fixed manufacturing overhead 4.00
Variable selling expenses 5.30
Fixed selling expenses 5.30
Total cost per unit $35.70

Assume that

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