NewWave Technology, a manufacturer of printed circuit boards, has always costed its circuit boards with a 100

Question:

NewWave Technology, a manufacturer of printed circuit boards, has always costed its circuit boards with a 100 percent “markup” over its material costs to cover its manufacturing support costs (which include labour). An activity analysis suggests that support costs are driven primarily by the number of manual operations performed on each board, estimated at $4 per manual operation.

Compute the estimated support costs of the two typical circuit boards below using the traditional markup and the activity analysis results:

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