Giuseppina's Glassworks makes glass flanges for scientific use. Materials cost $1 per flange, and the glass blowers are paid a wage rate of $24 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $24,000 per period. Period (nonmanufacturing costs associated with flanges are $14,000 per period and are fixed. Read the requirements, Requirement 1. Select the graph that shows fixed, variable, and total manufacturing cost for flanges, using units (number of flanges) on the x-axis. (Enlarge each graph before selecting your answer.) Ioa OC OD 100.000 1 100,0001 100,0007 100,000 Total costs Variable costs Total costs Variable costs Cost Cost Cost Cost Fixed costs Fixed costs Fixed costs Fixed costs otal costs Variable costs OKTTTTT 2,09,00,08)0000200,000 Number of flanges Total costs OKTTTT 0,09,00,0000000-00000 Number of flanges OKTT Xariable costs 06 2,00,0008, AWOD09,000 Number of flanges 2,09,00,02 0000200,000 Number of flanges Requirement 2. Assume Giuseppina's Glassworks manufactures and sells 5,000 flanges this period. Their competitor, Finn's Flasks, sells flanges for $9.00 each. Can Giuseppina sell below Finn's price and still make a profit on the flanges? (Round the total cost per unit to two decimal places.) Giuseppina's Glassworks makes glass flanges for scientific use. Materials cost $1 per flange, and the glass blowers are paid a wage rate of $24 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $24,000 per period. Period (nonmanufacturing) costs associated with flanges are $14,000 per period and are fixed. Read the requirements. otal costs Variable costs OKTIT 2,09,06,08)00012,420,000 Number of flanges Total costs 06TT 2,00,0008010900,00,000 Number of flanges Variable costs 04 2,00,08/08, CM002040,000 Number of flanges 0,00.000,0&000020120,000 Number of flanges Requirement 2. Assume Giuseppina's Glassworks manufactures and sells 5,000 flanges this period. Their competitor, Finn's Flasks, sells flanges for $9.00 each. Can Giuseppina sell below Finn's price and still make a profit on the flanges? (Round the total cost per unit to two decimal places.) Begin by determining the formula used to calculate the total cost per unit. = Total cost per unit The total cost per unit when manufacturing 5,000 flanges is therefore, they sell below Finn's price and still make a profit Requirement 3. How would your answer to requirement 2 differ if Giuseppina's Glassworks made and sold 10,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making? (Round the total cost per unit to two decimal places.) The total cost per unit when manufacturing 10,000 flanges would be $ Y make a profit if the selling price is below $9.00 each. Managers must be cautious using unit costs for decision making because remain the same With production and sales at this level, the company regardless of the number of units produced. Choose from any list or enter any number in the input fields and then continue to the next
