Question
-Company produces mobiles and purchasing the batteries at $ 14 per unit. The management suggests producing the batteries instead of purchasing it. The annual quantity
-Company produces mobiles and purchasing the batteries at $ 14 per unit. The management suggests producing the batteries instead of purchasing it. The annual quantity of batteries is 30,000 units. The costs of producing the batteries are as follows: - $10 variable cost per unit, the company will pay annual rent $150,000 to rent a new machine to produce the batteries, and the general fixed cost for the company is $300,000. Then the cost of producing the battery is
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None of the other answers
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25
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10
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15
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----If the revenue of product A is $30,000, the variable cost is $20,000, the unavoidable fixed cost is $4000, the avoidable fixed cost is $12000, and the company decide to increase the sales of the product by 40%, then you advise the company to
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none of the other answers
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continue producing the product
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delete the product
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