Question: The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats.The fixed setup costs for both plants are
The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats.The fixed setup costs for both plants are identical.
Plant A can produce 550 bats per week.The plant works one 8 hour shift per day with 8 staff.The plant works 5 days per week.The average wage is $22 per hour.The plant would use 600 units of maple and can buy maple at $4 per unit.Based on location and staffing levels, the plant would be assigned an overhead allocation of $1000 per week.
What is the total cost of production per week for Plant A?Answer in whole numbers
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