Posted by **Daniel** on Tuesday, September 4, 2012 at 12:26am.

Sandusky Inc. has the following costs when producing 100,000 units:

Variable Costs $400,000

Fixed Costs 600,000

An outside supplier is interested in producing the item for Sandusky. If the item is producing outside, Sandusky could use the released production facilities to make another item that would generate $100,000 of net income. At what unit price would Sandusky accept the outside supplier's offer if Sandusky wanted to increase net income by $80,000?

## Answer This Question

## Related Questions

- accounting - Incremental Analysis question: I know the answer is $4.20, but I ...
- FINANCE - Need help on this Study Problem. Chevy's Manufacturing has fixed costs...
- Economics - The accompanying table shows a car manufacturer’s total cost of ...
- math - Dynacan Ltd. manufactured 10,000 units of product last year FC= 22,200,...
- accounting - "Harris Company manufactures and sells a single product. A ...
- Accounting - Mushroom Company, a retail company, has two departments, "G" and "S...
- Accounting - If fixed costs are $300,000, the unit selling price is $31, and the...
- Accounting - Blane Company has the following data: Total Sales 800,000, Total ...
- accounting - Looking at this question and not sure why fixed cost is 2,000 and ...
- managerial accounting - 32) Sarker manufacturing company produces and sells 40,...

More Related Questions