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A company produces 2 , 0 0 0 flash memories ( USB ) a day in its two shifts: 1 , 0 0 0 USB

A company produces 2,000 flash memories (USB) a day in its two shifts: 1,000 USB in the first shift (6 am -2 pm) and 1,000 USB in the second shift (2 pm -10 pm). The fixed manufacturing cost per day is $4,000 The total labor cost per shift is $1,000 The variable cost is $2 per USB produced a. Compute the unit manufacturing cost (cost per USB). To increase its production to 3,000 USB per day, the company is considering adding a nightshift (10 pm -6 am): The labor cost for the night shift will be twice of the regular labor cost. The fixed manufacturing cost per day will increase by 25%. The variable cost will remain the same ($2 per USB). b. Compute the average manufacturing cost per unit for a three-shift working day. . c. If the selling price of each USB is $30 each, is it profitable to introduce the night shift? Why?

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