Question: Analyze the quarterly costs of a manufacturing firm for three different production costs over four quarters. Quarter Units Produced Total Cost P Cost per Unit
Analyze the quarterly costs of a manufacturing firm for three different production costs over four quarters.
| Quarter | Units Produced | Total Cost P | Cost per Unit P | Total Cost Q | Cost per Unit Q | Total Cost R | Cost per Unit R |
|---|---|---|---|---|---|---|---|
| 1 | 5,000 | $10,000 | $15,000 | $20,000 | |||
| 2 | 10,000 | $10,000 | $20,000 | $40,000 | |||
| 3 | 2,500 | $10,000 | $12,500 | $10,000 | |||
| 4 | 7,500 | $10,000 | $18,000 | $30,000 |
Required: a. Compute the cost per unit for each cost. b. Classify each cost as fixed, variable, or mixed. c. Provide an analysis of how each cost classification affects cost-volume-profit analysis. d. Suggest ways to optimize the cost structure based on the identified cost behaviors.
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Solution Lets address each part of the question stepbystep a Compute the cost per unit for each cost First we need to calculate the cost per unit for Total Cost P Q and R for each quarter Quarter Unit... View full answer
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