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Your company has received an order for 20 units of a product. The labor cost to produce the item is $9.76 per hour. The setup cost for the item is $64 and material costs are $27 per unit. The item is sold for $100. The learning rate is 75 percent. Overhead is assessed at a rate of 47 percent of unit labor cost.
1) Determine the average unit cost for the 20 units if the first unit takes 4.9 hours. $
2) Determine the minimum number of units that need to be made before the selling price meets or exceeds the average unit cost. units
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