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Coca-Cola Company provided the following data for its bottling plant: Fixed Manufacturing Overhead: $1,000,000 Variable Manufacturing Overhead: $0.05 per unit Direct Labor: $0.20 per unit

Coca-Cola Company provided the following data for its bottling plant:

  • Fixed Manufacturing Overhead: $1,000,000
  • Variable Manufacturing Overhead: $0.05 per unit
  • Direct Labor: $0.20 per unit
  • Direct Materials: $0.30 per unit
  • Production Volume: 2,000,000 units

Requirements:

  1. Prepare a detailed Cost Sheet.
  2. Calculate the total manufacturing cost per unit.
  3. Determine the total manufacturing costs.
  4. Analyze the effect of a 10% increase in production volume on the total manufacturing costs.
  5. Discuss the impact of fixed costs on the overall cost structure.

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