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help Question 6, E2-32A (similar to) Part 2 of 7 Danya Thompson 01/ Grand-Cola spends $3 on direct materials, direct labor, and variable manufacturing overhead
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Question 6, E2-32A (similar to) Part 2 of 7 Danya Thompson 01/ Grand-Cola spends $3 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it produces Fixed manufacturing overhead costs $6 million per year. The plant, which is currently operating at only 75% of capacity, produced 25 million units this year. Mana operate closer to full capacity next year, producing 30 million units Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead Read the requirements HW Score: 58.24%, 2.91 of 5 points Points: 0.09 of 1 Requirement 1. What is the current total product cost (for the 25 million units), including fixed and variable costs? Determine the formula, then calculate the current total product cost (for the 25 million units) including fixed and variable costs Total fixed costs 4 Total variable costs $ 6 million + 5 75 Total product costs $ 81 million million Requirement 2. What is the current average product cost per unit? Determine the formula then calculate the current average product cost per unit (Enter your answer to the nearest cent) Current average product cost per unit million million per unitStep by Step Solution
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