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Ceradyne Electronics manufactures portable power supply units. Ceradyne has recently decided to use an activity-based approach to cost its products. Production line setups is a
Ceradyne Electronics manufactures portable power supply units. Ceradyne has recently decided to use an activity-based approach to cost its products. Production line setups is a major activity at Ceradyne. Next year Ceradyne expects to perform 1,930 setups at a total cost of $4,307,760. Ceradyne plans to produce 720 units of product EP150, which will require 2 setups.
How much setup cost will be allocated to each unit of EP150 produced?
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