Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90 p per unit. Fixed costs are expected to amount to 52,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.10 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 8 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.010 U.S. dollar.) 2. The Sorde Company has just approached Corrientes to make a special one-time purchase of 18,000 units. These units would not be sold by the sales personnel, and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge per unit on this special order to earn additional profit of 21,600 p? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in pesos. Sales price required р per unit
Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90 p per unit. Fixed costs are expected to amount to 52,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.10 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 8 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.010 U.S. dollar.) 2. The Sorde Company has just approached Corrientes to make a special one-time purchase of 18,000 units. These units would not be sold by the sales personnel, and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge per unit on this special order to earn additional profit of 21,600 p? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in pesos. Sales price required р per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject : Accounting
Transcribed Image Text:Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90 p per unit. Fixed costs
are expected to amount to 52,000 p for the year, and all variable manufacturing and administrative costs are expected to
be incurred at a rate of 2.10 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their
commission is 8 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's
national currency. Many countries use the peso as their national currency. On the day this exercise was written,
Argentina's peso was worth $0.010 U.S. dollar.)
2. The Sorde Company has just approached Corrientes to make a special one-time purchase of 18,000 units. These units would not be
sold by the sales personnel, and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge
per unit on this special order to earn additional profit of 21,600 p?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in pesos.
Sales price required
Р
per unit
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