Great $-$ Cola spends $$2$ on direct materials, direct labor, and variable manufacturing overhead for every unit $(12-$pack of soda$)$ it produces. Fixed manufacturing overhead costs $$6$ million per year. The plant, which is currently operating at only $65\%$ of capacity, produced $30$ million units this year. Management plans to operate closer to full capacity next year, producing $40$ million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead. Requirements

What is the current total product cost $($for the $30$ 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 $40$ 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?

Read the requirements.

Requirement $1.$ What is the current total product cost $($for the $30$ million units$),$ including fixed and variable costs?

Determine the formula, then calculate the current total product cost $($for the $30$ million units$),$ including fixed and variable costs.

illion $+=$ Total product costs

million $=$

million