Question
2) The total operating costs of a small single-product company were 325,000 in April and 347,000 in May. The production volume was 8,600 in April
2) The total operating costs of a small single-product company were 325,000 in April and 347,000 in May. The production volume was 8,600 in April and 9,500 in May. The normal production volume of the company is 12,000 pieces per month. In addition, it is known that fixed costs increased by 5,000 in May, while variable unit costs remained unchanged.
a) What were the company's variable costs ( / piece) and fixed costs () in May?
b) In June, the variable unit costs will increase by 1.2 / piece and the production volume will be 10,800 pieces. Fixed costs remain unchanged. Calculate the product's minimum, average, and normal cost for June
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