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I am struggling to make the math work for this question. How do we get to a production cost of 9.50 by adding 2,000 units?
I am struggling to make the math work for this question. How do we get to a production cost of 9.50 by adding 2,000 units? I am getting 9.34:
Item cost per unit Total Monthy Cost |Cost per unit New Total Monthly Cost Cucumbers 1.66 1 1.66 18,260 Spices and vinegar 1.22 11,000 1.22 13,420 ars and lids 1.11 10,000 1.11 11,100 Direct Labor- paid by case 3.33 30,000 3.33 36,000 Salaried Line supervisor 10,000 10,000 Depreciation of factory 10,000 10,000 Property taxes on factory 3,000 3,000 nsurance on factory 1,000 1,000 Total Costs 90,000 102,780 Total units 9,000 11,000 cost per unit 10 9.34 Gold price per unit 20 20 current profit per unit 10 Total Profit 90,000Step by Step Solution
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