Answer:
The unit manufacturing cost for the daytime shift is $472. Adding a second shift would decrease the unit manufacturing cost to $464.5.
Explanation:
Given that Venus Robotics produces 25,000 robots per year on its day shift, its fixed costs are $ 2,300,000 and its labor costs are $ 9,500,000, the cost per unit produced during this shift is $ 472 ((2,300,000 + 9,500,000) / 25,000) .
Now, to produce another 25,000 robots in the night shift, labor costs will be 15% higher, reaching about $ 10,925,000 (9,500,000 x 1.15), but fixed costs will only increase by about $ 500,000, reaching $ 2,800,000. Thus, the fact of producing these robots in a night shift would imply that the total costs per unit between both shifts will be $ 464.5 ((2,800,000 + 9,500,000 + 10,925,000) / 50,000), with which it is economically feasible to add said production shift.
