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10. Just Burn It! Manufactures blank CDs. The company incurs $22,000 in monthly depreciation costs on its manufacturing equipment as well as monthly advertising costs

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10. Just Burn It! Manufactures blank CDs. The company incurs $22,000 in monthly depreciation costs on its manufacturing equipment as well as monthly advertising costs of the $2,000 to place ads in newspapers and on the radio. Each CD requires materials and manufacturing overhead resources. On average the company uses 26,000 pounds of material to manufacture 12,000 CDs per month. Each pound of material costs $2.50. The manufacturing overhead is driven by machine hours and on average company incurs $30,000 in manufacturing overhead to produce 12,000 CDs per month. Required: 1.) Create a formula for the monthly cost of the CDs for Just Burn It! 2.) If the company plans to manufacture 15,000 CDs next month, what is the expected fixed cost? What is the total variable cost? What is the total cost

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