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Help Save & Exit Scom This question will be sent to your instructor for grading The cost structure of Sackville Manufacturing Company (SMC) at two
Help Save & Exit Scom This question will be sent to your instructor for grading The cost structure of Sackville Manufacturing Company (SMC) at two levels of production is as follows 17 80.000 00000 10 Units Costs: Direct materials Direct labour Factory Overhead Total costs Average cost per unit 2.00 STGOOD 120,000 216 000 $495.000 $6.15 $200.000 150.000 209.00 $199.000 $599 Required a. Classily and explain each production cost as either strictly variable or strictly foredor mixed bDetermine the total production cost equation for SMC, using the units of production as the cost devet le sure to identity clearly all the separate components of the equation) c. Explain what causes the drop in average cost per unit from $710 to 5660 when production is increased from 60.000 to 80,000 units. Show all supporting calculations Short Anne
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