fizzy cola spends $$2$ on direct materials, direct labor, and variable manufacturing overhead for every unit $(12$ pack of soda$)$ it produces. Fixed manufacturing overhead costs $$3$ million per year. The plant, which is currently operating at only $65\%$ of capacity, produced $25$ million units this year. Management doesn't anticipate any changes in the prices it pays for material, labor, and manufacturing overhead.in the prices it pays for materials, labor, and manufacturing overhead.

Read the requirements.

Requirements

Requirement $1.$ What is the current total product cost $($for the $25$ million units$),$ including fixed and variable costs?

Determine the formula, then calculate the current total product cost $($for the $25$ million units$),$ including fixed and variable costs.

Requirement $2.$ What is the current average product cost per unit?

Determine the formula, then calculate the current average product cost per unit. $($Enter your answer to the nearest cent.$)$

What is the current total product cost $($for the $25$ million units$),$ including fixed

and variable costs?

What is the current average product cost per unit?

What is the current fixed cost per unit?

What is the forecasted total product cost next year $($for the $30$ million units$),$

including fixed and variable costs?

What is the forecasted average product cost next year?

What is the forecasted fixed cost per unit?

Why does the average product cost decrease as production increases?