Question: Using the information provided below, determine the life-cycle cost per unit of the industrial processing system (show all calculations). INFORMATION In addition to the mining
Using the information provided below, determine the life-cycle cost per unit of the industrial processing system (show all calculations). INFORMATION In addition to the mining equipment, the industrial processing division of Octopus is set to launch a newly developed industrial processing system. The following information relates to the system for the 2023 2025 financial years:
2023 2024 2025 Units 4 000 10 000 14 000 Variable production cost per unit 830 650 450 Fixed production costs 1 080 000 1 260 000 1 440 000 Variable selling cost per unit 200 150 150 Fixed selling costs 720 000 792 000 900 000 Administrative costs 280 000 280 000 280 000
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