Serile Pharma places 800 units in production during the month of January. All 800 units are completed during the month. It had n
1 answer:
Answer:
Per unit cost will be $197.5
Explanation:
We have given number of units produced = 800
Direct material cost added in January = $74000
And conversion cost added in January = $84000
So total cost = $74000+$84000 = $158000
We have to find the per unit cost of product produced
So per unit cost is given by total cost divided by total number of units produced
So per unit cost
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Answer:
Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.
Explanation:
For calculating the present value, all the cost and revenue will be considered.
Original revenue = Sale of 10 million chips
10 million $20 = $200 million
Less: Cost = 10 million $6 = $60 million
Net Revenue = $140 million
In case of introducing new chips
Revenue will be as follows
12 million $25 + 3 million
$20
= $300 million + $60 million = $360 million
Less: Costs 12 million $8 + 3 million
$6
= $96 million + $18 million = $114 million
Net Revenue = $360 - 114 = $246 million
Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.