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DaniilM [7]
3 years ago
11

A company would like to produce 5000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the

product is $1.50 per product. After producing 500 products, the company must stop production to replace a filter on the machine (the filter is replaced after producing every 500 products). The filter costs $50.00. What is the Total Cost Per Product
Business
1 answer:
Alexxandr [17]3 years ago
3 0

Answer:

Total Cost Per Product is $1.60

Explanation:

From the question the following information are derived:

Direct raw material cost per product = $1.50

The cost of the filter for producing 500 products = $50

Hence, the cost of the filter per product = $(50 / 500) = $0.10

In this question, No cost of labor is given, we can now decide the following

Total Cost per product = $(1.50 + 0.10)

= $1.60

Total Cost Per Product in this account is $1.60

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Yes, there is no need to change the eatings habits

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Therefore, MU / P for hot dog = MU / P for Hamburger

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