Apex Tech manufactures phone chargers. Their cost structure is: Cost Element Amount ($) Direct Materials 6.00 Direct Labor 4.00 Manufacturing Costs: - Variable 2.00 - Fixed 3.00 Distribution Costs: - Variable Fixed 1.50 2.50 A foreign distributor offers to buy 10,000 units. Additional export costs would be $0.75 per unit. What is the relevant unit cost for this order? a) $13.25 b) $14.25 c) $18.75 d) $19.75

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Apex Tech manufactures phone chargers. Their cost structure is:
Cost Element
Amount ($)
Direct Materials
6.00
Direct Labor
4.00
Manufacturing Costs:
- Variable
2.00
- Fixed
3.00
Distribution Costs:
- Variable
Fixed
1.50
2.50
A foreign distributor offers to buy 10,000 units. Additional export costs would be $0.75 per unit.
What is the relevant unit cost for this order?
a) $13.25
b) $14.25
c) $18.75
d) $19.75
Transcribed Image Text:Apex Tech manufactures phone chargers. Their cost structure is: Cost Element Amount ($) Direct Materials 6.00 Direct Labor 4.00 Manufacturing Costs: - Variable 2.00 - Fixed 3.00 Distribution Costs: - Variable Fixed 1.50 2.50 A foreign distributor offers to buy 10,000 units. Additional export costs would be $0.75 per unit. What is the relevant unit cost for this order? a) $13.25 b) $14.25 c) $18.75 d) $19.75
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