Value-Cola spends $2.00 on direct materials, direct labour, and varlable manufacturing overhead for every unit (12-pack of soda) it produces. Fixed manufacturing overhead costs $5 million per year. The plant, which is currently operating at only 65% of capacity, produced 20 million units this year. Management plans to operate closer to full capacity next year, producing 25 million units. Management does not anticipate any changes in the prices it pays for materials, labour, and manufacturing overhead. Requirements Requirement a. What is the current total product cost (for the 20 million units), including fixed and variable costs? Determine the formula, then calculate the current total product cost. 0 Requirements Total product costs million + million milion Requirement b. What is the current average product cost per unit? Determine the formula, then calculate the current average product cost per unit. (Round your answer to the nearest cent.) a. What is the current total product cost (for the 20 million units), including fixed and variable costs? b. What is the current average product cost per unit? c. What is the current fixed cost per unit? d. What is the forecasted total product cost next year (for the 25 million units)? e. What is the forecasted average product cost next year? f. What is the forecasted fixed cost per unit? g. Why does the average product cost decrease as production increases? Current average product cost per unit per unit million million Print Done Requirement c. What is the current fixed cost per unit? Determine the formula, then calculate the current fixed cost per unit. (Round your answer to the nearest cent.) Current fixed cost per unit per unit million 1 million Requirement d. What is the forecasted total product cost next year (for the 25 million units)? Determine the formula, then calculate the forecasted total product cost next year. Forecasted total product costs Requirement d. What is the forecasted total product cost next year (for the 25 million units)? Determine the formula, then calculate the forecasted total product cost next year. Forecasted + total product costs million + million million Requirement e. What is the forecasted average product cost next year? Determine the formula, then calculate the forecasted average product cost per unit next year. (Round your answer to the nearest cent.) Forecasted average = product cost per unit per unit million million Requirement f. What is the forecasted fixed cost per unit? Determine the formula, then calculate the forecasted fixed cost per unit. (Round your answer to the nearest cent.) Forecasted fixed cost per unit million million per unit Requirement g. Why does the average product cost decrease as production increases? over 5 million more units. The company will be operating efficiently, so the average cost of making The average product cost decreases as production volume increases because the company is each unit decreases