1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tasya [4]
3 years ago
11

Grand-cola spends $3 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it

produces. Fixed manufacturing overhead costs
$3million per year. The plant, which is currently operating at only 80 %

of capacity, produced 15 million units this year. Management plans to operate closer to full capacity next year, producing 25

million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead.

1.

What is the current total product cost (for the 15 million units), including fixed and variable costs?
2.

What is the current average product cost per unit?

3.

What is the current fixed cost per unit?

4.

What is the forecasted total product cost next year (for the25 million units), including fixed and variable costs?
5.

What is the forecasted average product cost next year?

6.

What is the forecasted fixed cost per unit?

7.

Why does the average product cost decrease as production increases?
Business
1 answer:
Setler79 [48]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Q=15 million

Q*=25 million

Unitary variable cost= $3

Fixed manufacturing overhead costs $3million per year

A) For Q:

Total cost= 3000000+15000000*3= $63000000

B) Average cost per unit=63000000/15000000=$4.2

C) Fixed cost per unit= 3000000/15000000= $0.2

D) Q*=25000000

Total cost= 30000000+25000000*3=$78000000

E) Fixed cost per unit= 3000000/25000000= $0.12

D) It decreases because the fixed costs are distributed by more units.

You might be interested in
State farm Commercial "she shed" Who burned down the she-shed
Anika [276]

Explanation:

The ad features a character named Cheryl who calls State Farm to check whether she's insured for the outdoor "she shed" burning down in front of her and her husband, Victor. The prevailing fan theory is that Victor burned down the she shed

5 0
3 years ago
Read 2 more answers
Delaney Inc. has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the c
lina2011 [118]

Answer:

qwertyuiopasdfghjklzmnbxvctqyeuippskdnf

Explanation:

di kopo yarn alam

5 0
3 years ago
Three graduate business students are considering operating a fruit smoothie stand in the Harbor Springs, Michigan, resort area d
Leviafan [203]

Answer:

a. 8,000 + 1,000 + 3.2Q

b. 27,000 + 3.2Q

c. 15,000 Units

Explanation:

a. The accounting cost function is shown below:-

Accounting cost function = Fixed Leasing and insurance cost + material cost and supplied cost

= 8,000 + 1,000 + 3.2Q

b. The economic cost function is shown below:-

Economic cost function  = Accounting cost + Opportunity cost

= 9,000 + 3.2Q + 3*6,000

=27,000 + 3.2Q

c. The computation of break even point is shown below:-

Break even Point = Total Fixed Cost ÷ Price - Average Variable cost

= 27,000 ÷ 5 - 3.2

= 15,000 Units

8 0
3 years ago
. Assume you are participating in your employer's direct deposit program. On payday, the employer deposits your ________ into yo
Tems11 [23]
On pay day, the employer deposits your NET SALARY into your bank account.
Direct deposit program is a salary payment program in which an employer works together with the bank to deposit the employees salary directly into their accounts on the pay day of each month.
7 0
3 years ago
Variable costs A. are fixed per unit and vary in total as production levels change. B. are fixed in total as production levels c
Bumek [7]

Answer: Option A

Explanation: In simple words, Variable cost is that cost of the business that changes with level of production. Hourly wage rate of workers, electricity bill of factory are some of many examples of variable cost.

The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.

Hence, from the above we can conclude that the right option is A.

8 0
3 years ago
Other questions:
  • Regency Inn leased a rental office in the lobby of its hotel to Americar, a car rental agency. Wagner rented a car from Americar
    12·1 answer
  • Quantity demanded: a. shows how much sellers are willing and able to sell at different prices. b. is the amount that buyers are
    15·1 answer
  • A difference between strategic and tactical goals is that: a. strategic goals are more specific than tactical goals. b. strategi
    5·2 answers
  • While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being
    12·1 answer
  • Identifying advantage of working in teams
    15·2 answers
  • Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can
    5·1 answer
  • ASAP PLEASE!
    11·1 answer
  • You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9. Part 5 is optional.
    9·1 answer
  • Samantha is a single mother raising two young children. In 2015, she was let go from her assembly line job at the car plant wher
    12·1 answer
  • Amrit initiated a new venture with cash Rs 20,000 ,bank balance Rs 80,000 and computer Rs 50,000​
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!