MathGames produces two electronic, handheld educational games: Fun with Fractions and Count Calculus. Data on these products follow.
Additional data from its two production departments follow.
Required:
1. Using ABC, determine the cost of each product line.
2. What is the cost per unit for Fun with Fractions? What is the cost per unit of Count Calculus?
3. If Count Calculus sells for $ 59.95 per unit, how much profit does the company earn per unit of Count Calculus sold?
4. What is the minimum price that the company should set per unit of Fun with Fractions?Explain.