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