Mini-Case 11-1: Pricing for Profit
Miller Manufacturing, Inc., produces electronic components for television circuitry. Variable costs comprise 67 percent of the product's selling price. The variable costs of producing a component include:
Direct material $1.83/unit
Direct labor $6.72/unit
Variable factory overhead $ .86/unit
Vicki Miller, President, expects to produce 80,000 electronic components and to incur $280,000 of fixed costs.
-What is Miller Manufacturing's break-even price?

Question

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The Answer of Mini-Case 11-1: Pricing for Profit
Miller Manufacturing, Inc., produces electronic components for television circuitry. Variable costs comprise 67 percent of the product's selling price. The variable costs of producing a component include:
Direct material $1.83/unit
Direct labor $6.72/unit
Variable factory overhead $ .86/unit
Vicki Miller, President, expects to produce 80,000 electronic components and to incur $280,000 of fixed costs.
-What is Miller Manufacturing's break-even price?