unit costs Ralph manufaetures two produets. The manufacturing eost CUlVe is given by TMC = 40,000 + 10ql + 5q:z, where q; denotes units ofproduet i and TMC denotes total manufacturing eost.

aJ Plan #1 ealls for ql = 2,500 units and 'h = 2,500, while plan #2 ealls for ql =

3,500 and 'l2 = 1,400 units. Determine total manufacturing eost for eaeh plan.

bJ Suppose Ralph employs a unit eosting proeedure in whieh the "fixed" eost is alloeated to the produets on the basis of total physieal units. Determine the unit eost for eaeh produet under both plans.

e] Suppose Ralph employs a unit eosting plOeedure in whieh the "fixed" eost is allocated to the produets on the basis of relative separable eost incurred. Determine the unit eost for eaeh produet under both plans.

dj Repeat the above, for the cases where plan #1 uses ql = 3,000 and 'l2 = 1,000 while plan #2 uses ql = 1,000 and 'l2 = 3,000.

e J Carefully explain your unit eost results. Is this eost alloeation?

AppendixLO1