Gummy land Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 5,000 per month. The machine costs $6,500 and is depreciated using straight line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total

= $1,200 per month. Gummy Land currently makes and sells 3,900 jaw-breakers per month. Gummy Land buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 40 cents per jaw-breaker. Next year Gummy Land expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same

Requirements

1. What is Gummy LandGummy Land's current annual relevant range of output?

2. What is Gummy LandGummy Land's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost?

3. What will Gummy LandGummy Land's relevant range of output be next year? How if at all, will total annual fixed and variable manufacturing costs change next year? Assume that if it needs to Gummy LandGummy Land could buy an identical machine at the same cost as the one it already has.

Gummy Land Candes manufactures ww.brator and nay tomated proces. The machine a produces centies w prefacerdy to make 5.00 per mom the machine cost $6.500 and is deprecated in traght in den over 10 years ng DOH Rent for the factory space and whether mavost 1.200 Our Landcurly more and a 1.000 Gunny and buy who the transmeds to sel Maescort 40 cents per weer Next Guy Larde demand by 100%. Wolne 80% on prentand other trading cow wil romana Rauman Requirement 1 Who is my Land Gunnual relevantage of Gummy Land's current rulevarrage of optis NAI Question 2, E2-28 (book/... HW Score: 40%, 2 of 5 pc Requirements ly and Id ware ust enc Jume of 1. What is Gummy Land's current annual relevant range of output? 2. What is Gummy Land's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost? 3. What will Gummy Land's relevant range of output be next year? How if at all, will total annual fixed and variable manufacturing costs change next year? Assume that if it needs to Gummy Land could buy an identical machine at the same cost as the one it already has. A ng Print Done Gear All Pages Get more netp