At the end of the year the production manager is taking inventory and finds 600 units of an older model of invisible fencing that the company no longer manufactures. These obsolete units can be disposed of through their regular channels, thereby incurring variable marketing expenses. What is the lowest price that they should accept for these obsolete units, realizing that if they do not sell them these units will have to be thrown away. (Show all supporting calculations).(NOTE: ignore taxes or other costs not specifically mentioned in the questions.) Marquette Manufacturing produces "invisible" electric dog fences, sold through retail locations nationwide. Theselling price of the fence is $150 per unit. The cost to manufacture and market the fences is shown below.These figures represent the cost at the company's normal volume of 3,000 units per month.Unit Manufacturing CostsVariable materials $ 15.00Variable labor$ 17.50Variable overhead $ 12.50Fixed overhead$ 16.00Total unit manufacturing costs$ 61.00Unit Marketing CostsVariable$12.00Fixed overhead$17.00Total unit marketing costs2$29.00Total unit costs$ 90.00

There are two type of costs in the manufacturing or selling of good. One is fixed costs and other is…

Answered: At the end of the year the production…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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At the end of the year the production manager is taking inventory and finds 600 units of an older model of invisible fencing that the company no longer manufactures. These obsolete units can be disposed of through their regular channels, thereby incurring variable marketing expenses. What is the lowest price that they should accept for these obsolete units, realizing that if they do not sell them these units will have to be thrown away. (Show all supporting calculations).

(NOTE: ignore taxes or other costs not specifically mentioned in the questions.)

Marquette Manufacturing produces "invisible" electric dog fences, sold through retail locations nationwide. The
selling price of the fence is $150 per unit. The cost to manufacture and market the fences is shown below.
These figures represent the cost at the company's normal volume of 3,000 units per month.
Unit Manufacturing Costs
Variable materials $ 15.00
Variable labor
$ 17.50
Variable overhead $ 12.50
Fixed overhead
$ 16.00
Total unit manufacturing costs
$ 61.00
Unit Marketing Costs
Variable
$
12.00
Fixed overhead
$
17.00
Total unit marketing costs
2$
29.00
Total unit costs
$ 90.00

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