What is the total variable cost $($Labor $+$Plastic$+$Bearing$)$ for each spinner produced on Production line $1$ and $2?$ Your Job: Your position is that of an Operations Analyst. You will be asked to make several calculations and solve problems for this product line.

Your skills will be gained through the material in this course.

Product Information: There are two production lines.

Production Line $1$: Capacity is $3,000$ Spinners per $8$ hour day. The company operates $250$ days per year.

Production Line $2$: Capacity is $5,000$ Spinners per $8$ hour day. The company operates $250$ days per year.

Other Costs:

Management Costs are $$480,000$ per year. Other fixed costs are $$360,000$ per year. This is the capital costs of the equipment, the building, repair

and maintenance. What is the total variable cost $($Labor $+$Plastic$+$Bearing$)$ for each spinner produced on Production line $1$ and $2?$