Louis the Child manufactures Gold Body Glitter. For 2018, Lo…
Louis the Child manufactures Gold Body Glitter. For 2018, Louis the Child has budgeted 32,000 units of glitter to be manufactured. The company currently has machines in place that are able to manufacture 40,000 units, but will incur an additional $300,000 to manufacture anywhere from 40,001-65,000 units. Fixed costs, excluding the $300,000 are $127,360. Direct labor costs are $10 per unit, direct material costs are $15 per unit, and variable overhead costs are $20 per unit. 2) The marketing manager supplies the following information on demand levels at different prices: Selling price per unit Demand in units 60 64,000 65 60,000 70 45,000 75 30,000 80 25,000 What selling price should the company charge in order to maximize operating income?