A company manufactures a product that is used in home appliances. The factory building is rented...
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A company manufactures a product that is used in home appliances. The factory building is rented for $1,750 per month and the material cost is $100 per unit. The labor cost is $15/hour. An 85% learning curve applies to labor, and it takes 10 hours to complete the first unit. The company decides to use the time of the 25th unit as a standard for cost estimation. If the selling price per unit is P = $600 -0.04D, find the following: a. [5 marks] The value of the variable cost per unit cv (round the final answer for cy to the nearest integer). b. [5 marks] The optimum number of units, to be produced in a month, to maximize revenue. c. [5 marks] The optimum number of units, to be produced in a month, to maximize profit. A company manufactures a product that is used in home appliances. The factory building is rented for $1,750 per month and the material cost is $100 per unit. The labor cost is $15/hour. An 85% learning curve applies to labor, and it takes 10 hours to complete the first unit. The company decides to use the time of the 25th unit as a standard for cost estimation. If the selling price per unit is P = $600 -0.04D, find the following: a. [5 marks] The value of the variable cost per unit cv (round the final answer for cy to the nearest integer). b. [5 marks] The optimum number of units, to be produced in a month, to maximize revenue. c. [5 marks] The optimum number of units, to be produced in a month, to maximize profit.
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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