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1. Your boss asked you for the per unit price of a new product at 200 units and at 400 units given the following:
Direct Material Cost is linear from $25/unit for 100 units to $20unit for 600 units
Direct Labor Hours are 2.2 hours/unit for 100 to 299 units and 2.0hours/unit for 300 to 599 units
Direct Labor Rate is $14/hour
Overhead is $50/unit
COGS Markup is 40%
2. Based on the following information: VC = $2 / unit FC = $1,200 / week Rev = $6 / unit what is the break-even quantity?
200
100
1,200
300
600
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