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Digital Solutions manufactures blank DVDs. The company incurs $22,000 in monthly depreciation costs on its manufacturing equipment as well as monthly advertising costs of $2,000
Digital Solutions manufactures blank DVDs. The company incurs $22,000 in monthly depreciation costs on its manufacturing equipment as well as monthly advertising costs of $2,000 to place ads on social media and on the radio. Each DVD requires materials and manufacturing overhead resources. On average the company uses 26,000 pounds of material to manufacture 12,000 DVDs per month. Each pound of material costs $2.50. The manufacturing overhead is driven by machine hours and on average the company incurs $30,000 in manufacturing overhead to produce 12,000 DVDs per month. A. Create a formula for the monthly cost of the DVDs for Digital Solutions. (Round the calculations and variable cost per unit to two decimal places.) B. If the company plans to manufacture 15,000 DVDs next month, what is the expected fixed cost? What is the total variable cost? What is the total cost
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