The following data pertain to an investment proposal: Required investment $75,000 Annual cash savings $18,000 Projected life of
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Explanation:
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Total Product Cost = ($70,000 + $35,500 + $43,700) ÷ 1,000 = $149.20
Total Period Cost = $30,600 + $29,300 = $59,900
Total Direct Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,900
Total Indirect Manufacturing Cost = $28,300
Total Manufacturing Cost = $70,000 + $35,500 + $43,700 = $149,200
Total Non Manufacturing Cost = $30,600 + $29,300 = $59,900
Total Conversion Cost = $35,500 + $43,700 = $79,200
Total Prime Cost = $70,000 + $35,500 = $105,500
Total Variable Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,000
Total Fixed Costs = $25,200 + $18,400 + $28,300 = $71,900
Variable Cost per unit = ($70,000 + $35,500 + $15,400 + $12,200 + $4,100) ÷ 1000 = $137.20
Incremental manufacturing cost = ($70,000 + $35,500 + $15,400) ÷ 1,000 = $120.90
