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Relevant costs High Frequency manufactures and sells wireless headphones. Information on last years...

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Accounting

Relevant costs
High Frequency manufactures and sells wireless headphones. Information on last years operations (sales and production of last years model) follows.
Sales price per unit $70
Costs per unit
Direct material $16
Direct labor 14
Overhead (50% variable)12
Selling costs (40% variable)20
Production in units 10,000
Sales in units 9,500
In April of the current year, the new model is in production, and it renders last years model obsolete. If the remaining 500 units of of last years model are to be sold through regular channels, what is the minimum price per unit that the company would accept for the headphones?

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