A buyer placed an initial order with a supplior named Ronco that makes brakn assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer collected the following costs from Ronco: Direct Material Costs $100/mit Direct Labor Costs $50/unit (5 hours/unit at $10/hour labor rate Overhead Costs $75/unit Icalculated at 150% of direct lubor) Total Costs of Goods Sold $225/unit Seller's Profit (25% of total $56 cost enarkup Total price per unit $281 At 200 units, what should the buyer epect to pay for these units whon factoring in a 20 productivity inprovenant deaning ate O Not enouh information avalable O $250un O $266.75nik

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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Question
A buyer placed an initial order with a supplier named Ronco that makes brake assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer
collected the following costs from Ronco:
Direct Matevial Costs
$100/mit
Direct Labor Costs
$50/unit (5 hours/unit at $10/hour labor rate
Overhead Costs
$75/anit Icalculated at 150% of direct labor)
Total Costs of Goods Sold
$225/unit
Seller's Profit (25% of total
$56 cost makup
Total price per unit
$281
At 200 units, what should the buyer erpect to pay for these units whon factoring in a 20 productivity ienprovenent deaning atai
O Not enou Information avalable
O 1250un
O $266.75nic
Transcribed Image Text:A buyer placed an initial order with a supplier named Ronco that makes brake assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer collected the following costs from Ronco: Direct Matevial Costs $100/mit Direct Labor Costs $50/unit (5 hours/unit at $10/hour labor rate Overhead Costs $75/anit Icalculated at 150% of direct labor) Total Costs of Goods Sold $225/unit Seller's Profit (25% of total $56 cost makup Total price per unit $281 At 200 units, what should the buyer erpect to pay for these units whon factoring in a 20 productivity ienprovenent deaning atai O Not enou Information avalable O 1250un O $266.75nic
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