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Martin Manufacturers produces a product with the following manufacturing cost hierarchy for its only current product. Activity Level Cost Unit $10 per unit Batch $250
Martin Manufacturers produces a product with the following manufacturing cost hierarchy for its only current product.
Activity Level | Cost |
Unit | $10 | per unit |
Batch | $250 | per batch |
Product | $5,000 | per year |
Facility | $25,000 | per year |
Next year Martin plans to manufacture 25,000 units of product, in batches of 250 units. Axe's predicted manufacturing cost for next year is:
Select one:
A. $750,000
B. $330,000
C. $305,000
D. $735,500
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