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assume again that andretti company has sufficient capacity to produce 120,400 daks each year. a customer in a foreign market wants to purchase 34,400 daks. if andretti accepts this order it would have to pay import duties on the daks of $3.70 per unit and an additional $27,520 for permits and licenses. the only selling costs that would be associated with the order would be $1.70 per unit shipping cost. what is the break-even price per unit on this order? (round your answers to 2 decimal places.)

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The breakeven price per unit on this order, given the different costs such as shipping costs and import duties, will be $6. 20

How to find the breakeven price per unit?

The breakeven price per unit is the price that will allow for the revenue to match the costs exactly.

This means that you need to find the cost of producing and sending the units to the customer in the foreign market. Andretti company has the capacity to produce more than the order so there will be no additional fixed costs.

The costs to produce and ship the units is therefore:

= Import duties + Permits and licenses + Shipping costs

= (3.70 x 34, 400 daks ) + 27, 520 + ( 34, 400 x 1. 70)

= $213, 280

The breakeven price per unit is therefore:
= Total costs to produce and ship units / Number of units

= $213, 280 / 34, 400 daks

= $6. 20

Find out more on breakeven price at https://brainly.com/question/17134070

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